Bain Capital, the private equity giant, has swooped in with a takeover offer of more than $1.8 billion for Bapcor.
👉 Background: Bapcor is the ASX-listed business behind car parts retailers like Autobarn, Bursons, Midas and Autopro stores. This company ain't small - they have over 1,100 stores with over 5,500 employees.
👉 What happened: Over the past 12 moths, Bapcor has been struggling with three quarterly profit downgrades alone. As a result, its share price has declined more than 27%. Now, Bain Capital, the private equity giant, has swooped in with a takeover offer of more than $1.8 billion.
👉 What else: This takeover offer values each share at around $5.40 - which is still well below the $8 that the share was sitting at just over 2 years ago - but clearly Bain Capital sees this as opportunistic.
💡Private equity takeovers are all about seeing value where others see challenges.
💡Bapcor has all the makings of a successful business, with a significant presence in the car parts industry with more than 25% market share across Australia - but right now, Bapcor is struggling with its finances and leadership team.
💡Private equity giants, like Bain Capital, will see this as an opportunistic buy and try and implement a quick turnaround.
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