Suncorp has announced the signing of a binding agreement to sell 90 per cent of its interest in Capital S.M.A.R.T to collision repair company AMA Group for $420 million.
Suncorp will retain a 10 per cent interest in the business and a seat on the subsidiary board.
Group CEO, Steve Johnston, said the transaction was in the best interests of customers, shareholders and the business.
“The increasing complexity of repairs is driving significant change in the smash repair and parts procurement industry, and the divestment means Suncorp can focus on its core Insurance and Banking operations,” said Johnston. “Importantly, the agreement maintains Suncorp’s competitive advantage and we look forward to working closely with AMA as an ongoing partner.”
Suncorp also announced the complete sale of its automotive parts supplier, ACM Parts, to AMA for $20 million.
The transactions are expected to complete by 31 October 2019.