Bapcor (ASX:BAP), a provider of vehicle parts, accessories, equipment, service, and solutions in the Asia Pacific region, has entered into a conditional agreement for the sale of MTQ Engine Systems.
MTQ Engine Systems is recognised nationally for its diesel fuel injection and turbo aftermarket sales and services, distributing and servicing leading global brands.
The completion of the transaction is anticipated in the first half of FY25, contingent upon the fulfilment of standard conditions precedent.
The divestment aligns with Bapcor's strategy to simplify its business operations, reset the cost base, and exit non-core businesses, as declared during the FY24 full-year results announcement.
Although MTQ is a smaller segment relative to Bapcor's overall scale, the sale marks a strategic move towards the company's optimisation efforts.
"MTQ is a highly specialised business providing services that are not core to Bapcor's offering. This transaction is an example of our commitment to right-size the company’s cost base and remove operational complexity. In consolidating its portfolio, Bapcor will focus on growing in its core markets," stated Angus McKay, Executive Chair and CEO of Bapcor.
Bapcor is an ASX-listed company that provides vehicle parts, accessories, equipment, service and solutions. Its segments include trade, specialist wholesale, retail and New Zealand.