Halfords Group PLC: Halfords receives investment in its Avayler business, with Bridgestone taking a 5% stake (1762043)
01 Novembre 2023 - 8:00AM
UK Regulatory
Halfords Group PLC (HFD)
Halfords Group PLC: Halfords receives investment in its Avayler business, with Bridgestone taking a 5% stake
01-Nov-2023 / 07:00 GMT/BST
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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 GBP3,054,618, and generated a loss of GBP74,662 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.
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Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse
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The issuer is solely responsible for the content of this announcement.
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ISIN: GB00B012TP20
Category Code: MSCH
TIDM: HFD
LEI Code: 54930086FKBWWJIOBI79
Sequence No.: 281805
EQS News ID: 1762043
End of Announcement EQS News Service
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November 01, 2023 03:00 ET (07:00 GMT)
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