Key Highlights

  • MaxiPARTS completed the acquisition of Air Brake Systems at a value of $11.2 million, subject to normal working capital movements.
  • The price is four times average Operating EBITDA of $2.8 million before AASB16, ahead of any synergies.
  • The company said the deal is 17% EPS accretive on full-year results with no synergies and is funded from existing cash and debt facilities.
  • Anticipated synergies and underlying growth are estimated to deliver a group operating EBITDA contribution of $5.5 million in FY29.

MaxiPARTS Limited (ASX:MXI) announced on 19 October 2026 that it has completed the acquisition of Air Brake Systems (ABS). The release set out the payment structure, the valuation multiple, a profile of the acquired business and an estimated breakdown of synergies through to FY29.

Acquisition value and payment structure

The acquisition value is $11.2 million, subject to normal working capital movements. Of this, 75% was payable on completion, while 12.5% is payable at one year and 12.5% at two years after completion, subject to specific performance criteria being met. The total price represents four times average Operating EBITDA of $2.8 million before AASB16 and before any synergies. On a post-AASB16 basis, Operating EBITDA is $3 million.

MaxiPARTS said the acquisition is 17% accretive to earnings per share based on full-year results with no synergies, and that it is fully funded from existing cash and debt facilities.

About Air Brake Systems

ABS commenced in 1991 and has 20 employees, revenue of $20 million and average Operating EBITDA of $2.8 million before AASB16. It operates from one site in Hornsby, New South Wales, with remote sales and technical staff supporting customers primarily on the east coast of Australia.

About 60% of ABS revenue comes from selling brake kits to trailer original equipment manufacturers. The balance comes from aftermarket parts sales to resellers and fleet owners, technical service support and telematics. ABS is one of three authorised Wabco OE brake distributors in Australia and also distributes Raufoss, Kongsberg, Knorr-Bremse and Haldex products.

Synergy estimate and bridge

MaxiPARTS estimated that anticipated synergies, combined with underlying ABS business growth, would deliver a group operating EBITDA contribution of $5.5 million in FY29. The bridge starts from current EBITDA of $3.00 million and adds $0.61 million from supply chain, $0.54 million from brake sales through MaxiPARTS, $0.62 million from trailer OE sales and $0.73 million from other synergies and movements.

Components of the synergies

The supply chain component involves shifting current MaxiPARTS spend with other suppliers to the ABS supply chain, with scale benefits expected. The brake sales component relies on an increase in sales from range expansion and increased internal technical competency.

The trailer OE component relies on sharing key customer relationships, expanding the product offering and using MaxiPARTS national warehousing to improve ABS stock and service support. The other component combines cost savings through scale and group support with growth in telematics and the traditional business, partly offset by a loss of ABS sales to MaxiPARTS competitors.

About MaxiPARTS

MaxiPARTS is an Australian distributor operating through two brands. MaxiPARTS distributes aftermarket parts for the commercial and heavy vehicle sectors, and Förch Australia supplies workshop consumables across a broad range of industries. The announcement was authorised by the Board of MaxiPARTS Limited.