Bain Capital bids $1.8bn for Bapcor

Bain Capital has offered to acquire Autobarn parent company Bapcor, which operates in 840 locations across the country, for about $1.83 billion.

Victoria-based Bapcor today released a statement to the market, announcing Bain Capital has made an unsolicited bid to acquire 100 per cent of its shares after the ASX closed on Friday.

Bain Capital was co-founded by 2021 US presidential candidate Mitt Romney, and has invested and acquired hundreds of companies since its establishment including Virgin Australia.

Under the US investment firm’s offer, Bapcor shareholders would receive $5.40 cash per share, bringing the company’s value to $1.83 billion.

But in its statement, Bapcor said there was no guarantee the proposal would lead to a transaction at this time.

The proposal would also be subject to conditions including completion of due diligence, a unanimous recommendation from the board, and approvals from regulatory and statutory bodies.

Bapcor operates 23 businesses including Burson Auto Parts, Autobarn, Autopro, Midas, Baxters, JAS Oceania Australia, and CarParts.

Burson Group, founded by Garry Johnson and Ron Burgoine in 1971, became Bapcor Limited in 2016.

Bapcor’s business has taken a hit this year, after the company delivered a profit downgrade and reportedly will close three of its national distribution centres for two weeks to prevent inventory blowout.

One of Bapcor‘s warehouses is located in Welshpool.

Bapcor’s board appointed Macquarie Capital as financial adviser and Allens as legal adviser.

Shares in the company were trading at $4.97 each, up almost 14 per cent as of 4.10pm AEST.