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
All three businesses are culturally and operationally aligned and have been incorporated into the existing RPM infrastructure with the management retained.
Notably, the acquisitions are value and earnings per share accretive for RPM.
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.
“Smooth transition of all three acquisitions”
RPM CEO Clive Finkelstein said: “We are pleased with the smooth transition of all three acquisitions and welcome their staff and management to the RPM Automotive Group.
“There is good cultural alignment with our current operations.
“We have already begun adding value across the RPM network through cross-selling of products and cross-pollinating customers and are harnessing immediate cost synergies from the scale benefits of a larger coordinated distribution network across the country.
“Our recent capital raise has allowed us to fund this expansion and we continue to examine other strategic acquisitions in line with our growth strategy.”
Rebranding and integration
Citic Autoparts which was acquired by RPM on 17th September 2020 has been rebranded and is now known as RPM Autoparts Pty Ltd, operating within RPM’s wheels and tyres division.
Meanwhile, Elite Tyre Group acquired on 21st April 2021 has also been integrated into RPM’s wheels and tyres division.
Super Tyre Mart acquired on 21st April 2021 has been awarded a Carline Automotive License and is signed on as a Formula Off-Road distributor.
Integrated into RPM’s Repairs & Roadside Division, Super Tyre Mart is now operating as Carline Caroline Springs.