GUD Holdings Limited (GUD) is pleased to announce that it has signed a sale and purchase agreement to divest Davey for a total enterprise value of $64.9 million.
The divestiture of Davey signifies the Group’s exit from the Water sector and crystalises GUD’s ambition to be a pure play Automotive business.
Graeme Whickman, Managing Director of GUD commented “This transaction simplifies the GUD Group by becoming an automotive pure play and strengthens the Group’s balance sheet by materially reducing net debt. It also represents an important strategic step towards supporting GUD’s growth aspirations in 4WD Accessories and Trailering, Lighting and Power Management, Undercar, Powertrain and Electric Vehicles. The Group remains focused on growing these key prospective automotive categories both organically and via financially and strategically compelling acquisitions. Whilst the pipeline of acquisition opportunities is rich, as previously communicated, the Group remains focused on delivering APG’s business case before considering any transformative acquisitions.
Waterco is in our view the natural owner of the Davey business, and we are optimistic about the prospects for the combined businesses. I would like to thank Davey’s CEO, Valentina Tripp and the entire team for their significant contribution to Davey and the wider GUD Group.”
GUD Chair, Graeme Billings said “The sale provides a favourable outcome for the Group and our shareholders. It is pleasing to see Davey, an iconic Australian brand, with a long history in this country and abroad, combining with an Australian listed business that also shares a strong heritage in the Water sector. We are excited by the future growth prospects for GUD as it progresses along its strategic journey, now as we concentrate on the automotive businesses with their clear and very promising growth corridors.”