THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018

FOR IMMEDIATE RELEASE

1 Nov 2023

Halfords Group plc

(“Halfords” and together with its subsidiaries, the “Group”)

Halfords receives investment in its Avayler business, with Bridgestone taking a 5% stake.

 

Halfords, the UK’s leading provider of Motoring and Cycling products and services, today announces that it has reached an agreement for the sale of a 5% minority stake in its Avayler business, Avayler Trading Limited (“Avayler”), to Bridgestone Americas, Inc. (“Bridgestone”), a leading global mobility company, and has also agreed the terms of a master commercial agreement with Bridgestone (the “Commercial Agreement”)  to establish their business as an ongoing client of Avayler (together, the “Transaction”).

Headlines:

• Bridgestone will acquire a 5% stake in Avayler for consideration of USD 3m, which will be satisfied in cash.
• Avayler is a wholly-owned subsidiary of Halfords and provides automotive “software as a service” to the Group, as well as to other global mobility clients.
• The proceeds of the Transaction will be used for general corporate purposes, including to support the continued growth of Avayler.
• The Transaction establishes Bridgestone as a client of the Avayler business, becoming the latest global mobility client to use the Avayler platform.

 

Avayler overview

• Avayler was launched in July 2021, having been developed in-house by Halfords to manage services across garages, mobile vans and retail stores. It is a "software as a service” (SaaS) provider for automotive companies that operate in multiple locations. Avayler helps automotive businesses digitalise their service, from online customer booking through to invoicing.
• Avayler’s first customer was American Tire Distributors Inc., one of the largest independent distributors of tyres to the replacement tyre market in North America. Since then, Avayler has won several significant contracts with operators around the globe, including Tirebuyer in the USA and Mobivia in Central Europe.

Transaction summary

• Bridgestone and Halfords’ wholly owned subsidiary, Avayler Holdings Limited (“Avayler Holdings”), have entered into a share purchase agreement pursuant to which Bridgestone has agreed to acquire a 5% stake in Avayler for consideration of USD 3m which will be satisfied in cash.
• Halfords, Avayler Holdings, Avayler and Bridgestone have also entered into a shareholders’ agreement in relation to Avayler. The shareholders’ agreement affords Bridgestone certain minority shareholder protections, including the right to compel Avayler Holdings to purchase all of Bridgestone’s shares in Avayler if certain events occur. If that right is exercised by Bridgestone, the price payable by Avayler Holdings (the “Put Option Price”) for Bridgestone’s shares in Avayler will be driven by Avayler’s financial performance at the time of exercise and can (at Avayler Holdings’ election) be settled in cash or in Halfords shares. Halfords has guaranteed Avayler Holdings’ obligation to pay the Put Option Price to Bridgestone.
• Under the Commercial Agreement, which has an initial term of 15 years (with certain break rights), Avayler will provide Bridgestone with access to Avayler’s in-garage and van software products as well as certain services to facilitate Bridgestone’s use of it, including services relating to maintenance, development, implementation and support. The Commercial Agreement provides for the roll-out of Avayler’s products across Bridgestone’s retail and van operation in the USA.

Graham Stapleton, Chief Executive Officer of Halfords, commented:

“Since its launch a little over two years ago, Avayler has been chosen by some of the largest automotive businesses in the world who have immediately realised the compelling value that it can add to their operations. Today’s investment from Bridgestone, one of the world’s largest mobility companies with over 3,000 garages and vans under its world-wide operation, is another fantastic endorsement for the platform, and the length and scope of the agreement fuels our confidence in Avayler’s long-term potential as we continue to roll it out to more clients around the world.”

Avayler had gross assets as at 31st March 2023 of £3,054,618, and generated a loss of £74,662 in the financial year ending March 2023.

 

Enquiries

Investors & Analysts (Halfords) 

Jo Hartley, Chief Financial Officer 

Andrew Smith, Group Financial Controller 

Louise Richardson, Head of Investor Relations  +44 (0) 7483 457 415                                                   

 

Media (Powerscourt)  +44 (0) 20 7250 1446

Rob Greening    halfords@powerscourt-group.com

Nick Hayns

Elizabeth Kittle

The person responsible for releasing this announcement is Jo Hartley, Chief Financial Officer.

 

Notes to Editors

www.halfords.com                         www.avayler.com                     www.tredz.co.uk                     www.halfordscompany.com                     

Halfords is the UK’s leading provider of motoring and cycling services and products. Customers shop at 393 Halfords stores, 2 Performance Cycling stores (trading as Tredz and Giant), 643 garages (trading as Halfords Autocentres, McConechy’s, Universal, National Tyres and Lodge Tyre) and have access to 264 mobile service vans (trading as Halfords Mobile Expert, Tyres on the Drive and National), 479 commercial vans and 5 HME Cycling vans. Customers can also shop at halfords.com and tredz.co.uk for pick up at their local store or direct home delivery, as well as booking garage services online at halfords.com.

Cautionary statement

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations, and businesses of Halfords Group plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Halfords Group plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.