RPM Automotive Group Ltd (ASX:RPM) has completed the acquisition of safety products business, Safety Dave Pty Ltd, underpinning rapid growth in the company’s Performance and Accessories division.
The business commenced trading as an RPM Automotive Group subsidiary on February 1, 2022, with funding for the acquisition from internal cash reserves.
Notably, Safety Dave is expected to be immediately value and earnings per share accretive before considering potential synergies.
“Smooth transition”
Commenting on the acquisition, RPM CEO Clive Finkelstein said: “We are pleased with the smooth transition of Safety Dave into our Performance and Accessories division and welcome their staff and management to the RPM Automotive Group.
“There is good cultural alignment with our current operations that will begin to add value across the broader RPM network through cross-selling of products and channels, and harnessing immediate cost synergies from the scale benefits of a larger coordinated distribution network.
“Our recent capital raise has allowed us to fund this expansion and we will continue to examine other strategic acquisitions in line with our growth strategy, to become Australia’s leading automotive aftermarket business.”
Acquisition particulars
There are attractive macro industry fundamentals to underpin the growth of RPM's Performance and Accessories division with exceptional growth in Recreational Vehicle (RV) registrations year-on-year.
The two companies are culturally and operationally aligned, with staff and management retained after the acquisition.
Looking ahead, RPM is currently holding 15 months of future orders relative to the Recreational Vehicle Sector
About Safety Dave
Established in 2002, Safety Dave is a market leader in specialist safety products for caravans and campervans with some of its products used in both the home and motor vehicles.
The business specialises in safety products such as rear vision systems, tyre pressure monitoring systems, defibrillators, first aid kits and fire safety products.
Notably, Safety Dave has sold and distributed more than 90,000 Rear Vision Kits Australia-wide alone.