News 23 Sep 2022

National Sherco distributor acquired by MotorCycle Holdings

Mojo Group to be taken over by leading dealership operator.

Image: Supplied.

MotorCycle Holdings has acquired national Sherco distributor Mojo Group in an agreement announced today and valued at up to $60-million.

Mojo Group – made up of both Mojo Motorcycles and Mojo Electric Vehicles – has been operating for near two decades under the ownership of Michael Poynton and Joshua Carter.

“We believe the acquisition of the Mojo Group will present significant growth opportunities by introducing the importation and distribution of motorcycles, ATVs and scooters into our existing product offering, increasing our warehouse capacity and expanding our distribution network,” explained David Ahmet, MotorCycle Holdings managing director and founder.

Aside from Sherco, Mojo Group is the importer of CFMoto, Kymco and Landboss, based in Altona North, Victoria, and featuring a network of 150 dealers. The group also has a facility in Yatala, Queensland.

According to the official announcement, MotorCycle Holdings will acquire Mojo Group for consideration of up to $60 million on a cash-free, debt-free basis. It will be comprised of $20-million in cash, 11.539 million MTO shares (escrowed for two years/consideration shares) and deferred consideration of up to $10 million.

MotorCycle Holdings will fund the cash component of the consideration through an increase to its debt facility and the acquisition price represents an earnings multiple of 4.1 times Mojo Group’s FY22 net profit before tax.

Mojo Group principals Poynton and Carter will take up senior executive positions with MotorCycle Holdings and Poynton will also join the board. Conditions to completion of the acquisition – targeted for 31 October 2022 – include obtaining shareholder approval for the issue of the consideration shares at the AGM and obtaining key contract and third-party consents.

“In addition, MTO continues to explore other motorcycle franchise acquisition opportunities to increase its market share and geographic coverage in Australia,” Ahmet concluded.

Operating from over 40 retail locations in Queensland, New South Wales, Victoria and the Australian Capital Territory, MotorCycle Holdings is Australia’s leading motorcycle dealership and accessories group. It also acquired accessories distributor Cassons in 2017.