Halfords approached with £1.4bn merger deal
Retailer Halfords has reportedly been approached by a van rental company with a £1.4bn merger proposition.
According to The Telegraph, Redde Northgate made the proposal to Halfords following a breakdown in negotiations over price and a previous offer of a no-premium merger. Halfords is said to feel undervalued by such a deal.
Founded in 1992, Redde Northgate has grown to employ around 7,400 staff. In 2020, the Redde and Northgate businesses merged together to form a full-service group, offering a range of vehicle management services including vehicle repair and replacements, insurance claims, fleet management and telematics.
Since then it’s been on an acquisition spree, purchasing: Nationwide Accident Repair Services, the UK’s largest wholly-owned repair network, renaming it FMG RS; Charged EV, a supplier and installer of EV charging equipment; GRG Public Resource, a 24/7 call handler for vehicle removal for the blue-light industry; Blakedale a traffic management vehicle supplier and most recently FridgeXpress, which provides temperature controlled van rentals.
Reports suggest that the UK Takeover Panel was informed of the discussions, with Redde Northgate expected to make another bid if the valuation of the two companies comes closer.