Motorcycle Holdings buys CFMOTO importer for $60 million

Motorcycle Holdings has announced its acquisition of local CFMOTO importer and distributor Mojo Motorcycles for a purchase price of up to $60 million.

The dealership giant, which is a publicly listed company and trades as MTO, will acquire 100% of shares in Mojo Motorcycles from its founders, Michael Poynton and Josh Carter.

Motorcycle Holdings will fund the purchase with 33% cash ($20 million) and 50% in MTO shares, while there is up to a $10 million earn-out depending on performance in the first 12 months.

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Mojo Motorcycles was born in 2006 as a wholesaler and is today the primary Australian importer and distributor for a range of motorcycle, scooter, ATV and UTV brands. The Mojo portfolio includes Kymco, Sherco, CFMOTO, Italjet, LandBoss, and Lambretta.

Poynton and Carter have grown the Melbourne-based business over its 19-year history, with the company now boasting 2 warehouses and 35 employees. Mojo reported an FY22 turnover of $124.2 million and an FY22 NPBT (net profit before tax) of $14.5 million.

In recent times, the CFMOTO brand become something of a flagship for Mojo, with significant growth thanks to a range of new models and an increased presence in the motorcycle industry. The Chinese brand is already a leader in the ATV and UTV space, but its partnership with KTM has seen it become a growing power in the two-wheel world.

Motorcycle Holdings was founded in 1989, and is one of Australia’s leading motorcycle dealership and accessories groups. It currently has 41 retail locations across Queensland, New South Wales, Victoria, and the ACT. The group also acquired accessories giant Cassons in 2017.

Both Mojo founders will take up senior executive positions with Motorcycle Holdings, with Poynton becoming a director and joining the board. The pair will also be 16% shareholders of the company.

Motorcycle Holdings is expecting Mojo to continue to grow in FY23 and has identified a number of growth opportunities including the addition of more brands and suppliers, potential to retail Mojo products in MTO dealerships, shared warehousing in NSW, Victoria and Queensland, and new warehouse opportunities in New Zealand and Western Australia.