THE DIVESTMENT CAMPAIGN
Our Client – The Vendor
Originally established in 2010 and still based in Brisbane, TSD is a leading wholesaler and retail supplier of running gear and spare parts for towed vehicles including caravans, camper-trailers, boat trailers and other trailer types. It predominantly services commercial customer segments (including RV equipment resellers, RV servicing workshops, automotive & brake workshops, and RV manufacturers) and also retails goods to tradespeople and consumers via its warehouse shopfront and eCommerce-enabled website. Stocking Australia’s widest range of 1,800+ SKUs, the Business boasts the largest variety of US-spec parts in the Country as well as its own trademarked product lines. Both in-house brands – LoadForce™ & HydraLine™ – represent premium offerings and are resold through 250+ outlets nationwide.
In 2023, having led the Business through 6+ years of high growth (circa 19% pa), the owners felt they had reached the limit of their professional and financial capacity to further develop the company. They engaged Johnsons with the aim of finding a strategic acquirer with the resources and capabilities necessary to continue building TSD into a national enterprise.
The National Sales Strategy
A well-established and highly profitable distribution business, this represented an attractive opportunity for prospective buyers. Other appealing features included: in-demand proprietary product lines; a large B2B customer-base with high rates of repeat business; diverse channels to market with growing interstate reach; and strong supplier relationships. In terms of future growth potential, there remained significant scope to build market penetration in addition to extending proprietary product lines – all backed by a very positive outlook for the Australian RV sector (in the region of 7-8% CAGR over 2023-2030).
Johnsons Corporate’s custom research focused on identifying other distributors of RV & trailer parts and accessories in Australia & NZ. Secondary target segments included Australian manufacturers of towed vehicles and distributors of aftermarket automotive products as well as financial buyers with investments in the mid-market. Johnsons’ proactive direct marketing campaign uncovered a range of interested parties, from across the spectrum of targeted segments. It elicited 40 expressions of interest. After further vetting and negotiations, one suitor stood out as an exceptionally strong fit – a PE-backed aggregator of brands operating in a large overlapping market.
(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).
The Strategic Acquirer
Headquartered in VIC, Recreation Brands operates as an aggregator of outdoor brands that supply components and accessories to RV dealers, OEMs, service partners, and outdoor retailers across Australia. This acquisition aligned with the organisation’s long-term growth strategy and represents a natural extension of its growing portfolio of companies
What Our Client Had to Say
"We are very happy to have just completed the sale of Direct Source Australia (t/a Trailer Spares Direct). As owners, it’s rewarding to have the value of our business recognised. Ultimately, we were excited to go with a Group that not only operated several companies in the RV sector but was also backed by private equity. And as we complete the handover period, we are confident that TSD is in good hands going forward."
Matt Allen & Justine Russell, Owners - Trailer Spares Direct