Auto-Focused European Business Offers Substantial Future Scalability
NEW YORK, Feb. 13, 2020 (GLOBE NEWSWIRE) -- Exxe Group, Inc. (OTC PINK: AXXA), a diversified company focused on synergistic acquisitions in real estate, sustainable technology, media, financial services and agribusiness, announced today that it has acquired a controlling interest in Mein Motor, a highly profitable, specialized engine repair company based in Germany with headquarters in Switzerland. Mein Motor, which is projected to generate over 2 million euro in revenue and nearly 800,000 euro in EBIT this year, is valued at 8 million dollars. This transaction is a terrific complement to Exxe Group’s car parts business and dovetails with the Company’s sustainable technology vertical. Furthermore, this business line has proven to be recession-proof and serves as a key example of current consumer automobile ownership and repair trends.
Mein Motors provides engine overhaul and repair at reasonable prices for more than a dozen popular and high end automotive brands including BMW, Mercedes Benz, Audi, Porsche and more. Mein Motor possesses unique expertise to repair engines for supercars such as Bugatti, Lamborghini, Ferrari, and others. With their exclusive focus in this arena, the company provides swift turn-around times and generates high operating margins. When an independent or authorized repair shop cannot replace or overhaul an engine, which is often a major undertaking, Mein Motors collects the defective motors from the shop and returns the fully overhauled replacement. This can often be completed and shipped back to the shop in the same amount of time as a replacement engine is shipped but at a fraction of the cost. According to Mein Motor, the overhauled engine is of the same quality of a new engine.
Considering car owners hold onto their vehicles longer (average age of vehicles is 11.4 years according to RL Polk) and drive greater distances, procuring an overhaul engine is a natural evolution of car ownership these days. Each overhaul costs roughly 3000 euros and due to its unusual automated e-commerce back-end and its in-house repair processes, the scalability opportunity in additional European markets such as France and Spain is high---an estimated 1 million engines annually. Management also sees an untapped opportunity in the commercial truck, construction equipment and shipping verticals. and are already being explored.
At present, Exxe Group believes the opportunity for growth could produce sales in excess of five times the current level in the next 3-4 years, exceeding 10 million euros with EBITDA margins maintaining 35-40% levels. In addition to this vertical, the company anticipates synergistic opportunities with Exxe’s DHE Group as the parts division drives swift deployment and expansion. Moreover, the disposal of the old engine parts and the production of new ones falls in align with Exxe Group’s sustainable technology principles.
“We are very excited to have acquired a majority stake in a highly profitable, fast-growing, sustainable, and recession-proof business. Synergies abound as do the pending entrance into new markets which should drive growth as the Mein Motor model has significant advantages and leverages current industry car ownership trends. Business development synergy and access to capital and expansion should serve as a catalyst for revenue and profit growth that could lead to M&A which would further advance our expansion goals in this sector,” noted Dr. Eduard Nazmiev, PhD, CEO of Exxe Group.
About Exxe Group
Exxe Group is a diversified corporation focusing on acquisitions in the following sectors: real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise. For additional information go to www.exxegroup.com
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