AutoZone buy 'opportunistic'

METAIR: GROUP'S NEED TO DIVERSIFY SEEMS TO HAVE TAKEN IT BY SURPRISE

- Roy Cokayne

JSE-listed Metair's acquisition of financially distressed AutoZone was opportunistic and driven by the group's need to diversify. Metair CEO Paul O'Flaherty said the acquisition of the privately owned automotive parts retailer and wholesaler, which went into voluntary business rescue in June, was unrelated to Metair's sale last month of Mutlu Akü, its energy storage subsidiary in Turkey, for about R1.95 billion.

O'Flaherty said the acquisition of AutoZone was "quite opportunistic", adding that it only went into business rescue on 30 June and Metair started the process to sell Mutlu Akü on 1 March.

"But we knew we needed to diversify and so when we saw this opportunity, that is when we approached the BRPs [business rescue practitioners] - so it just happened simultaneously.

“Once we have sold Mutlu Akü, we have got a high concentration in South Africa as a manufacturer for the OEMs [original equipment manufacturers] and we need to diversify on that.

"The OEMs are good business. We have been in that for 70 years but diversification is key to us," he said.

"To go into aftermarket parts is what we understand. We think this is a good synergy."

O'Flaherty said it represents a new direction for Metair, which hasn't been involved in retail apart from its First Battery business's franchised retail distribution network.