Australia's Bapcor Ltd confirmed on Tuesday that it had received a non-binding indicative proposal from private equity firm Bain Capital to acquire the automoti

Bain Capital Proposes $1.21 Billion Acquisition of Australia's Bapcor Ltd


blog post cover photo

Image credit: Anne Nygård

Australia's Bapcor Ltd confirmed on Tuesday that it had received a non-binding indicative proposal from private equity firm Bain Capital to acquire the automotive parts retailer. The deal values Bapcor's equity at A$1.83 billion ($1.21 billion).

Key Highlights:

  • Offer Details: Under the terms of the proposal, Bapcor shareholders will receive A$5.4 in cash per share. This represents a premium of 23.9% to the stock's last close of A$4.36 on June 7.

  • Market Reaction: Following the announcement, Bapcor shares surged by as much as 14.9% to A$5.010 by 0209 GMT, making them the top gainers on the benchmark S&P/ASX 200 index, which was down 1.4%.

  • Context: Bapcor has faced challenging trading conditions and senior management upheavals. Its shares have fallen 21% this year, trading at levels last seen in April 2020.


  • Challenging Performance: In May, Bapcor highlighted difficult trading conditions affecting retail performance and cited concerns about competitive pricing pressures impacting volume and margins amid rising costs. The company also warned that profits in the second half of 2024 would be lower than in the first half.

  • Management Turmoil: Bapcor has experienced significant management changes, with Paul Dumbrell deciding not to join the company as CEO in late April. The company is still searching for a permanent CEO and a new chair.

Analyst Insights:

  • Citi's View: Analysts at brokerage Citi noted that Bain's bid is not surprising given Bapcor's strong business fundamentals and favorable industry positioning. However, they view the bid as opportunistic, considering the company's current governance and management challenges.


Bain Capital's proposal to acquire Bapcor Ltd comes at a critical time for the automotive parts retailer, which is grappling with operational and managerial issues. While the offer provides a significant premium to shareholders, the bid's timing highlights the strategic opportunity seen by Bain Capital amidst Bapcor's current struggles.

Discover High-Quality Investment Opportunities

Utilize advanced tools like Discounted Cash Flow (DCF) analysis to identify and invest in high-quality stocks that align with Morgan Stanley's recommended strategy. Make informed investment decisions with comprehensive financial insights. Learn More

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep