The AMA Group has entered into an agreement to divest its ACAD businesses, except for the ACM Auto Parts and Fluiddrive businesses, to GUD Holdings.
Andy Hopkins, CEO of the AMA Group, said the move to divest the ACAD business to GUD will aid AMA’s focus on the panel repairs sector, providing greater opportunities for investment and growth for shareholders.
“The AMA Board and I performed a full review of the business and it became obvious that the medium to long term strategies and opportunities lie in our core capabilities,” said Hopkins. “Now AMA’s complete focus will be as the Australian, global leading, panel consolidator.
“The ACAD transaction is targeted for completion at the end of December 2020. The proceeds of the sale, circa $70 million, will be used to retire debt and importantly set the group up for continued growth in the panel repairs sector – the group’s core expertise and capability. I am excited about this transaction – it allows management to focus its efforts and invest in opportunities that will deliver long term growth for our shareholders.”
GUD’s acquisition of ACAD means East Coast Bullbars, CSM Service Bodies, Automotive Electrical & 4WD Accessories (AE4A), Uneek 4×4/Barden Fabrications and Fully Equipped join the group.
GUD said the acquisition is in line with its growth strategy, in particular securing new customers and categories through disciplined acquisitions. After funding costs, GUD said the acquired businesses will make a positive contribution to the group’s earnings.
“The acquisition of these businesses is highly complementary to GUD’s automotive business and provides strategic diversification across products and customer channels, along with increased exposure to fast growing pick-up truck and SUV vehicle segments,” said Graeme Whickman, GUD Holdings Managing Director and CEO. “We are excited by the opportunity to bring GUD’s strong customer focus and sales ethos to what are well managed and established businesses with impressive product development and manufacturing capabilities.”