Australia’s largest crash repair company, AMA Group, has received an indicative buyout proposal for its panel business from United States private equity firm, Blackstone.
In a letter to AMA shareholders, Company Secretary Terri Bakos said Blackstone valued the business at $530 million “on a cash free, debt free basis.”
However, Bakos said a deal was far from done.
“There is no certainty that a transaction with Blackstone or any other party will eventuate or of the nature of any such transaction. AMA will continue to inform shareholders and the market in accordance with its continuous disclosure obligations.”
According to the Australian Financial Review, Bell Potter industrials analyst Chris Savage called the offer “reasonable” but “not necessarily a knock-out bid.”
AMA operates 100 body shops around the country, with 33 of those added over the last 16 months. Blackstone is the biggest shareholder in a similar US business, Service King Collision Repair Centres, based in Texas.