Mojo Group principals will become senior executives with MotorCycle Holdings under the deal
Clayton Utz has provided guidance to Australian motorcycle dealership operator MotorCycle Holdings (MTO) on its acquisition of Mojo Motorcycles and Mojo Electric Vehicles (together Mojo Group).
Pursuant to the transaction, MTO will acquire 100% of the shares in Mojo Group for $60m on a cash-free, debt-free basis. MTO managing director and founder David Ahmet said that the acquisition “made strategic sense” for the company.
“We believe the acquisition of the Mojo Group will present significant growth opportunities by introducing the importation and distribution of motorcycles, ATVs, and scooters (including electric models) into our existing product offering, increasing our warehouse capacity and expanding our distribution network,” Ahmet said. “In addition, MTO continues to explore other motorcycle franchise acquisition opportunities to increase its market share and geographic coverage in Australia.”
The total consideration comprises nearly 11.539 million MTO shares, $20m in cash, and deferred consideration of up to $10m. MTO will fund the cash portion through an increase to its debt facility.
In line with the acquisition, Mojo Group principals Michael Poynton and Joshua Carter will take up senior executive positions with MTO, with Poynton set to also join the MTO board.
The deal is subject to shareholder approval and to MTO obtaining key contract and third-party consent. It is expected to be completed on 31 October.
Corporate partner Stephanie Daveson led Clayton Utz’s deal team on the transaction. Other lawyers who pitched in were senior associate Lisa Tolhurst and lawyer Kai Priestly.