NEWS
RPM AUTOMOTIVE GROUP STRENGTHENS NQ PRESENCE The group has announced three strategic growth transactions RPM Automotive Group Limited recently announced the acquisitions of Queensland businesses, Carline Automotive - Cairns, Carline Automotive, and Revolution Racegear - Townsville and leased a new warehouse. The businesses have been integrated into RPM’s Performance and Accessories Division, effective 1 August 2021, while the FNQ warehouse expands RPM’s distribution footprint. “Providing a seamless customer experience serviced by our specialist staff across all our integrated brands is key to the success of RPM Automotive Group,” RPM Chief Executive Officer, Clive Finkelstein, said. “The recent acquisitions of Carline Automotive - Cairns and Carline Automotive and Revolution Racegear - Townsville are great examples of our next expansion phase, purchasing some of our franchisees and members as part of our forward integration plan. “While opening the RPM Autoparts Townsville distribution centre enable us to improve our store supply capability in Far North Queensland. Our new warehousing facility is fully equipped to support our vertical integration model and house the breadth of products we offer. “The acquisitions of Carline Automotive - Cairns
and Carline Automotive and Revolution Racegear - Townsville (a Carline Group subsidiary) is part of our strategy outlined in our prospectus to acquire several Carline automotive outlets in the medium term and provides an opportunity to add further value to the businesses through revenue synergies from cross-selling products, and cost synergies from the scale benefits of a larger RPM Group. “The acquisitions are value and earnings per share accretive, and well-funded from existing cash balances and share issues follow RPM’s recent capital raising. We continue to evaluate further bolt-on and strategic acquisitions in line with RPM’s focused growth strategy.” The acquisitions are strongly aligned with RPM’s existing strategy of expanding the business through accretive acquisitions. The combined retail businesses are forecast to generate $3.5 million in revenue and $525k in EBITDA in FY22. The two businesses will contribute around 15 percent to the Repairs and Roadside Division in FY22.
consideration comprising of $125k cash and $375k in RPM shares (valued at RPM’s 60-day weighted average price from signing of the sale and purchase agreement). The cash payments will be funded from RPM’s existing cash reserves.
RPM Autoparts Townsville distribution centre is expected to generate $3.75 million in turnover and over $300k in EBITDA in its first 12 months of trading (expected opening date 1 October 2021).
RPM also recently announced that it has executed an agreement with Collins St Value Fund (CSVF) for an equity placement of $2,500,000 at 30 cents per share, a slight premium to the current share price.
The total purchase price is $500k, with
For more information, visit www.rpmgroup.net.au
AUTOMOTIVE ENGINEERING SHOW POSTPONED TO 2022 The 13th edition of the show will be rescheduled
India’s leading trade fair focused on technologies for automotive manufacturing, the Automotive Engineering Show (AES) Chennai, has been postponed on account of the impacts of COVID-19. The decision has been taken in line with the advisories issued by the Indian government. The magnitude of public health and safety issues posed by the rapidly escalating second outbreak of COVID-19 in India and advisories issued by the public health authorities, have led to the decision of the postponement of the show. Originally scheduled to take place from 1 – 3 July 2021 at the Chennai Trade Centre, the fair’s new dates will be announced after consultations with industry stakeholders in the coming months. Given the circumstances, the organisers feel that this is the responsible and best course of action, prioritising the health and safety of the industry and the community at large. “This is a difficult time for all of us and it is our joint responsibility to work in line with the local government’s efforts to take all precautionary
measures,” Messe Frankfurt Asia Holdings Ltd Executive Director and Board Member, Raj Manek, said. “Right now, our focus is on the well-being of our exhibitors, visitors, employees and all stakeholders and pray for everyone to be safe and in good health. “We are committed to the show and to the industry and will take a decision on the new dates once we have a more stable health situation along with a healthy business environment.”
The road ahead
draw attention to in-vehicle digitalisation, EV technologies, automation and robotics that is set to drive its way in the automotive manufacturing industry in the coming times.
The developments are critical towards the future growth of Indian automotive industry and aftermarket.
Through a series of insightful interactions for the auto, bus and coach, and aftermarket industries, the organisers will aim to keep the industry closely linked through virtual mediums like webinars, online b2b match-matching, product demonstration and live knowledge sessions throughout the course of lockdown and will continue to keep the sector players connected on upcoming developments until the fair opens its doors in 2022.
The next edition of AES Chennai thus aims to
For more information, visit www.aes-show.com
The recent thrust by the government on voluntary vehicle scrapping policy together with the shift towards safety, digitalisation and EV is expected to phase out old vehicles, and encourage fuelefficient, environment-friendly alternatives.
Australian Automotive Aftermarket Magazine September 2021
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