A publicly listed motorcycle business, which has 34 franchised dealerships operating from 24 sites in Australia, is to spend $123.2m to acquire accessories and part business Cassons.

MotorCycle Holdings (listed on the Australian Stock Exchange as MTO) will pay previous owners the Cassen family just under $100m in cash for the business.

Cassons operates eight retail stores in NSW and Victoria under the Motorcycle Accessories Supermarket brand, as well as an online store, generating $76.5m in revenue from total operations in the financial year 2017.

It sells motorcycle parts from exclusive brands such as Arai and Metzeler, as well as accessories like helmets, jackets and boots from house brands like RJays.

MTO  managing director and founder David Ahmet said the purchase of Cassons “made strategic sense”.

“[The acquisition] increases the scale of MTO’s existing retail accessory business, expands our distribution network and provides opportunities to improve margin by sourcing additional Casson product for retailing through the MTO dealer network,” he said.

“In addition, MTO continues to explore other motorcycle franchise acquisition opportunities to increase its market share and geographic coverage in Australia.”

MTO plans to continue the roll-out of its newly acquired retail brand, which could include the opening of new stores as well as enhancing online sales.

MTO already maintains dealership locations throughout Queensland, New South Wales and the ACT.

Cassons principals Rob and John Cassen will take senior executive positions in the new business.