Halfords Group has bought Nationwide Autocentres in a £73.2 million deal, which managers described as the next logical step in its expansion plans. 
Nationwide, which has been owned by private equity group Phoenix since 2006, employs 900 mechanics and serves roughly 500,000 customers a year. Nationwide offers customers and fleets MOTs, servicing and repairs, but also recently increased the emphasis on tires at its 224 outlets.
Following the acquisition, Nationwide will be re-branded as Halfords Autocentres. The next stage in the strategy is to roll-out at least 200 more centers over the next eight years, creating over 1,000 new jobs. However, according to Halfords, even before the new openings the acquisition of the entire issued share capital of Nationwide, creates the largest U.K. operator with a “specialized focus on the car parts, servicing and repair market.”
Commenting on the acquisition, David Wild said: "Our expansion into the adjacent car servicing and repair market is an exciting and logical move for Halfords. Car maintenance is a large and highly attractive sector where there is increasing demand from motorists for reliable service at affordable prices. Nationwide is a high quality business and represents an opportunity for significant growth.”
“We have grown strongly in this market through the provision of expert advice and our ‘wefit’ services, and Halfords Autocentres will complement our retail business closely. Customers trust the Halfords brand and we are sure that a national chain offering great service and MOTs at fair prices will be both popular and successful,” he concluded.
With 224 branches already and another 200 on the way following Halfords’ acquisition of the business, Nationwide Autocentres is on the brink of truly becoming a nationwide operation. And while the company’s core business is MOT and servicing rather than just tires, the scale of the new business alone is likely to have some degree of impact on national tyre sales.
Nationwide currently reports that it serves 500,000 customers each year. These are a mixture of fleet (25% of revenues) and private (75%). The company’s strategy is to differentiate itself within its market by being the only national operator to provide dealership quality service at lower prices. And this customer proposition is supported by a strong Web site. With companies like Kwik-Fit increasingly offering a wider range of services and companies like Nationwide increasing their interest in tires, the gap between the traditional tire specialist and auto center is narrowing.
Looking forward, the management have already identified 200 additional sites and Halfords’ plans to open centers at an average of 25 per year and £135,000 per center. New centers are expected to reach a four-year pre-tax payback. (Tyres & Accessories)
