What happened to the Bapcor share price?
Shares of Bapcor Ltd [ASX:BAP] have gapped up on open today, and the share price has continued to look strong in early trading.
Bapcor is a leading provider of aftermarket parts and accessories required for the repair and servicing of automotive vehicles. Their main clients are service repair mechanics throughout Australia.
Why did Bapcor shares do this?
Bapcor’s share price has moved up on news of an acquisition of diesel specialist MTQ Engine Systems.
MTQ Engine Systems is Australia’s largest diesel and turbo aftermarket sales and service provider.
They sell and service turbochargers and diesel fuel-injection products through a network of 10 branches across Australia, supplying products and services to the automotive, marine, rail, earth moving, transport, agriculture and power generation industries.
What now for Bapcor Ltd?
Expansion into the diesel and turbocharger segment of the market is complementary to the business and, according to CEO Darryl Abotomey, it’s a segment of the market they have been striving to present in. The acquisition will contribute positively to earnings.
The recent purchase is only one in a long line of acquisitions.
The company acquired 100% of Metcash Automotive Holdings last year. That included 416 stores and outlets under the Autobarn, Autopro, Carparts, ABS and Midas brands.
It’s also looking to expand into the New Zealand market by making a play to acquire Hellaby Holdings.
The market sees this string of acquisitions as positive for the company, if the share price is anything to go by.
You could watch now and see how the chart of the company share price reacts to the positive news. That will inform any investment decisions.
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