RPM Automotive Group acquires Queensland automotive businesses, lands $1.8 million option underwriting agreement
The group will add two Queensland-based automotive businesses to its portfolio in a $500,000 deal. The group has acquired two businesses and will open a distribution centre as part of its growth strategy.
RPM Automotive Group Ltd (ASX:RPM) has acquired two businesses and announced it will open a new distribution centre to grow its operations in Far North Queensland.
Carline Automotive - Cairns and Carline Automotive and Revolution Racegear - Townsville will join the RPM group as part of ASX-lister’s growth strategy in a $500,000 deal.
The businesses will be integrated into RPM’s performance and accessories division, effective August 1, 2021, while the Townsville distribution centre expands RPM’s distribution footprint.
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RPM Automotive Group enlarges auto aftermarket stable on completing three acquisitions
The acquisitions are already displaying revenue synergies by applying RPM’s expertise, contracts and sales network thereby providing the scale required to achieve purchasing advantage. RPM owns brands such as RPM Racewear, Carline, Genie, Air Anywhere, Formula Off-Road and RPM Autoparts.
RPM Automotive Group Ltd (ASX:RPM) has completed the acquisitions of Citic Autoparts, Elite Tyre Group and Super Tyre mart.
The new acquirees are now trading as RPM Automotive Group subsidiaries as of July 1 2021, with funding for the three acquisitions derived from internal cash resources.
Adds to RPM’s earnings per share
RPM Automotive Group welcomes two complementary tyre businesses into auto aftermarket fold
The company’s growth strategy remains on course, with organic business growth exceeding budget and further potential acquisitions in the pipeline. RPM remains on track to generate record revenues of $50 million in FY21.
RPM Automotive Group Ltd (ASX:RPM) has acquired two Victorian tyre businesses, Elite Tyre Group (ETG) and Super Tyre Mart (STM), which will be integrated into RPM’s Wholesale Tyre Division and its Repairs and Roadside Division respectively from July 1, 2021.
This is the second acquisition since the completion of RPM’s $5.1 million capital raising in January, enabling the company to advance operations together with providing working capital and funding for potential new opportunities.