Torpedo7 today announced the sale of a strategic 15 percent stake in its business to carsales.com Ltd, the owner and operator of the largest online automotive, motorcycle, industry, farm equipment and marine classifieds sites in Australia.
The Hamilton based company owns and operates the Torpedo7 and 1-day brands, and is the largest Australasian online retailer of adventure sport, motocross, bike, snow and fishing gear and daily product deals.
Luke Howard-Willis, Founder of Torpedo7, believes this sale will provide a significant competitive advantage for the company.
"We are very excited about this opportunity and the belief that a market leader like carsales has shown in our business. Our sales are now approaching 100 million dollars per annum and the company is growing fast. We have big plans for expansion and this deal gives us the tools we need to advance our growth."
The sale of a strategic stake to carsales will provide Torpedo7 with access to carsales' vast customer base and e-commerce expertise; however carsales will not have input into the day-to-day running of the Torpedo7 business.
"The carsales customer base is huge and every month millions of visitors are attracted to their classified site. The company was launched in 1998 and listed on the ASX in 2009. No other company comes close to its market share," says Luke.
carsales.com Ltd CEO and Managing Director, Greg Roebuck says significant potential synergies exist between carsales and Torpedo7.
"Carsales has continued to look for opportunities to expand both its geographic and vertical footprint in attractive markets. The acquisition of a strategic stake in 1-day and Torpedo7 adds a regionally leading e-commerce business to the carsales portfolio and is a natural extension to the business."
Torpedo7 Limited was advised by Auckland based merchant bank Clavell Capital.
"There was considerable interest from overseas corporates and private equity investors in Torpedo7, which is in line with strong interest in the sector and investment into New Zealand. There are cost advantages in operating an online retail business in New Zealand when compared with other countries, which added to the attraction of the opportunity to offshore investors," says Clavell Capital's Executive Chairman, David Belcher.