RPM Automotive Group Ltd (ASX:RPM) has completed the acquisition of Victoria Wide Tyre Service with that business now trading as a subsidiary and adding to RPM’s strong position in the Australian automotive aftermarket.
Vic Wide Tyre Service is considered by RPM to be a culturally and operationally aligned business and, as such, staff and management have been retained.
The new acquisition is expected to be immediately value and earnings per share accretive from RPM while also providing the organisation with immediate cost-reduction synergies.
“Smooth transition”
RPM CEO Clive Finkelstein said: “We are pleased with the smooth transition of Vic Wide Tyre Service into our Repairs and Roadside 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 the cross-selling of products and tyre brands to different customer bases, as well as cost synergies as a result of the scale achieved.
"We continue to examine other strategic opportunities to better service our customers, in line with our growth strategy, to become Australia’s leading automotive aftermarket business.”
Clive Finkelstein.
Funding for the Vic Wide Tyre Service acquisition was sourced from RPM’s internal cash reserves.
About RPM Automotive
RPM Automotive Group Ltd is a leading player in the Australian automotive aftermarket, comprising a number of businesses involved in importing, wholesaling and retailing of tyres, mechanical repairs, motorsport apparel and safety equipment, niche manufacturing and a roadside assistance service for the transport industry.
RPM owns brands such as RPM Racewear, Carline, Genie, Air Anywhere, Formula Off-Road and RPM Autoparts.