Burson is the largest trade focused distributor of automotive aftermarket parts in Australia. Burson operates an extensive distribution network of 114 stores, a distribution centre in Victoria and a fleet of over 500 delivery vehicles. Burson’s distribution network spans across all Australian states and territories except WA and the ACT with over 500,000 SKUs and 30,000 customers throughout Australia.
Quadrant was attracted to Burson due to its strong brand, leading market position, defensive industry qualities and significant scope for footprint expansion.
Our investment thesis focused on driving ongoing like for like sales growth, increasing the store footprint, implementing supply chain efficiencies and improved purchasing disciplines and building out the base of management expertise.
Under Quadrant’s ownership EBITDA increased by 80% to $41.3 million (prospectus forecast for June 2015).
Quadrant achieved a number of operational and structural improvements including:
- Growing the network by 32 stores nationally predominantly through the acquisition of independent operators;
- Undertook a full review of supply terms and introduced in-store disciplines to deliver significant margin improvements;
- Broadened the product range to accommodate the ever broadening population of makes and models; and
- Invested significantly in the calibre of the senior management team introducing a new CEO, CFO, Director of Sales, Director of Operations and an HR Director.
“Burson successfully listed on ASX in April 2014 with an enterprise value of $370 million."