Car parts and cycle chain Halfords has snapped up McConechy’s, one of Scotland’s biggest tyre repair and MOT businesses.
Founded in Ayr more than 60 years ago, McConechy’s has 60 sites across Scotland and the north east of England and generates annual revenues of about £45 million. It employs some 330 staff.
Halfords said the deal would increase its footprint, providing motorists with access to more than 900 service locations across the UK.
Financial terms surrounding the deal have not been revealed.
Graham Stapleton, chief executive of Halfords, described the acquisition as “highly complementary” to the group’s service-led strategy.
“The addition of McConechy’s further strengthens our growing and unique motoring services offer, which includes Autocentres, Halfords Mobile Expert and our WeFit services in our stores,” he said.
“The additional garages and vans increase our national presence and takes Halfords to within a 15-minute drivetime to over half of UK households.
“The vehicle servicing market is a £10 billion market, but one which remains highly fragmented, offering significant scope for Halfords’ trusted and recognised consumer brand to grow its market share considerably.”
As well as its physical sites, McConechy’s operates 100 vans across Scotland and the north of England.
Advisers on the deal included PwC for Halfords, while the shareholders of McConechy’s were advised by a team from Grant Thornton’s corporate finance practice.
Grant Thornton partner Neil McInnes said the family firm’s majority shareholder had decided that now was the right time to sell the business.
He added: “This is a great outcome for our long-standing client, which as a family business has grown over many years into a multi-million-pound revenue company providing a high quality service and trusted advice to its customers.
“The strategic sale of the company to Halfords – one of the largest and most respected names in the consumer services sector – provides a great future for its hard-working and dedicated team at McConechy’s. We wish all parties well for the future.”
Donald Carmichael, the outgoing managing director at McConechy’s, said: “We were delighted to find a partner in Halfords to be able to take the McConechy legacy forward and continue to provide the high quality service to our retail and commercial customers going forward and wish continued success to all those involved in the business.”