COMPANY FOR SALE
IMPORTER AND DISTRIBUTOR OF
CAR SPARE PARTS AND ACCESSORIES
Our client is one of the leading importers of spare parts and accessories for parts and commercial vehicles in Southeast Europe. The Company carries on business of import and distribution of spare parts, accessories, professional tools and service equipment for passenger cars and commercial vehicles such as trucks and buses sourced from over 80 suppliers globally for European, South Korean and Japanese vehicles.
According to the latest report “Automotive Industry in Southeast Europe” published by SeeNext in May 2023 in 2021 the Automotive Industry in Southeast Europe generated €32 billion operating revenue. The biggest earner was car components and accessories with €13,8 billion followed by car electronics €7,6 billion, vehicle manufacturers €7 billion, tyre manufacturers €3,2 billion and car exteriors generating operating income of €235 million. The Industry employed 285.000 people in 2021.
In the car parts and accessories distribution and sales where our client operates, there has been notable consolidation of the market in fewer distributors and sellers. There were some regional expansions, for example Croatian CIAK Group regional expansion. Increasingly the market proves to be attractive to large international players from Europe such as Swiss Automotive Group (SAG) or Polish Inter Cars or from the US such as LKQ Corp. We believe the car parts and accessories distribution and sales segment of the Automotive Industry is poised for further consolidation.
Suppliers and Products
The Company sells spare parts for the leading brands of European, Japanese and Korean cars as well as for all European commercial vehicles. In recent years it started with supply of parts for construction vehicles to respond to market needs for spare parts for such vehicles because of the increasing construction works in the country.
The Company offers about 40.000 products to its customers. Inventory of about 10.000 products is permanently maintained with the current sale value of about €4,8 million.
The Company has the most modern storage software for precise determination of products according to the type of vehicles, as well as programs for the monitoring of the inventory, which allows it to respond to customer requests in the fastest possible time.
The process of suppliers’ representation, organization of inventory and distribution is managed by an experienced team for over fifteen years. The team members are graduated mechanical engineers who have extensive knowledge of automotive sector and quality standards as well as the market in which the Company operates. In combination with the state of art storage software the Company operates, the sales team can respond quickly and efficiently to customers’ demands for spare parts identification, sourcing and delivery. The Company employs 61 people.
Fixed assets
The Company owns a warehouse of 1.200m2 as the central distribution centre for all its products. The Company also has 12 regional distribution centuries with their own warehouses to be close to its customers. These premises are rented. Adjacent to it is the administrative HQ on 360m2 and a large parking of about 2.000m2 for passenger and commercial and delivery vehicles. The estimated market value of these fixed assets is about €1.2 million.
Inventories
The Company sells about 40.000 products and 10.000 of which it keeps in stock. The sale value of this products in stock is about €4,8 million.
The products are supplied by a growing number of approved suppliers worldwide. The Company has about 80 suppliers at present.
The Company serves over 6.000 buyers/customers. Customers are confident they will get quality parts at attractive prices, car service garages rest assured they offer to their consumers quality car parts because of which they come back again and again with new orders. Commercial vehicle owners are assured of arriving at their destination with minimal breakdowns, while the retail customers enjoy the benefits of range, attractive prices and availability.
Receivables and liabilities
The Company provides 15-30 day sales on credit to creditworthy customers. Consequently, the trade receivables do not fluctuate much. In 2020 there were €1.701.019, in 2022 €1.582.016.
The Company does not have any long or short term liabilities such as bank loans.
Other relevant points
- The Company’ financial performance is improving from year to year;
- Average annual growth rate (CAGR) of the Company's revenue in 2020-2022 was 13,77%;
- In 2022 the revenue was €9 million, EBITDA €1,3 million, net profit €1,15 million;
- Well-known and powerful brand on the market, brand and logo registered and protected;
- Established product quality control system recognized and accepted by numerous customers;
- Huge, accumulated know-how regarding the import, distribution and sale of passenger and commercial vehicle products;
- Highly recommended!!!