We were initially approached by John and Jenny Brice, the then owners of BTN Turbocharger Limited to assist with their distribution company sale due to John’s approaching retirement. BTN Turbocharger is an independent turbocharger distributor offering sales and repairs to turbochargers and selling into the ‘aftermarket’ in the UK and Europe. The company was and remains the largest independent turbocharger distributor in the world.
With significant regulatory change in the broader automotive sector and consolidation amongst both dealerships and distribution outlets we were convinced that there would be a strong market for the business. The management team within BTN were well-established and very capable of taking the business forward under new ownership and thus providing the outgoing owners the ability for a clean exit.
With such a presence in its niche market, we decided to go broadly to potential acquirers from across the automotive supply chain, dealerships, and distributors. We also ensured that the overseas market, particularly Europe, was tested.
As a result of the consolidation within the UK market-place and the higher margins available from parts supply over and above traditional car sales, we received strong interest from the dealership market-place and as a result chose Lookers Group PLC, and within this their FPS Distribution division, as the preferred bidder.
One of the key features of the turbocharger market-place is the fact that there are only 3 main manufacturers worldwide (Garrett, Holsett and Borg Warner). They therefore carry a great deal of power in the supply chain and meant that the stakeholder issues in this transaction needed to be carefully managed. Not only did we have to ensure the outgoing owners achieved a clean exit at the greatest value, we also had to ensure the incumbent management team were looked after and that any buyer would be agreeable to the key suppliers to our client.
BTN Turbo are the largest turbocharger distributor in the world. Purchased for £3.9 million, BTN Turbo strengthened the Lookers groups’ FPS aftermarket business. The business has been successfully integrated and its performance has been excellent, beyond management’s original expectations.
Neil Davis, MD FPS Distribution
Thank-you very much for you careful management of our deal. We are very pleased at the outcome, the best we could have hoped for.
John Brice, Owner BTN Turbocharger Limited