GUD HOLDINGS (“GUD” OR THE “GROUP”) ENTERS INTO AN AGREEMENT TO ACQUIRE AMA GROUP’S AUTOMOTIVE COMPONENTS AND ACCESSORIES DIVISION EXCLUDING FLUIDDRIVE HOLDINGS (“ACAD”) AND ANNOUNCES EQUITY RAISING
GUD enters into an agreement to acquire AMA Group's Automotive Components and Accessories Division, excluding FluidDrive Holdings and announces equity raising.
GUD today announced that it has entered into an agreement to acquire AMA Group’s ACAD business (excluding FluidDrive), for an enterprise value of $70.0 million, subject to customary purchase price adjustments and capex adjustments1. GUD’s acquisition of ACAD (excluding FluidDrive) will see East Coast Bullbars, CSM Service Bodies, Automotive Electrical & 4WD Accessories (AE4A), Uneek 4x4 / Barden Fabrications and Fully Equipped become a part of the Group. The transaction is expected to complete on or before 31 December 2020 and is subject to a material adverse change condition, successful completion of the Equity Raising, and New Zealand Overseas Investment Office direction. The acquisition is in line with GUD’s growth strategy, in particular, securing new customers and categories through disciplined acquisitions. After funding costs, the acquired businesses will make a positive contribution to the Group’s earnings and the acquisition is expected to be mid single-digit pro forma FY21F EPSA accretive, pre synergies2.
View the Investor presentation and ASX announcement for more detail.
1 Potential for acquisition consideration to adjust up or down by $2.1 million as a result of outperformance / underperformance vs. FY21F revenue.
2 As if ACAD had been acquired on 1 July 2020. On a pre AASB 16 basis, before amortisation of identifiable intangibles recognised as a result of the acquisition.