Late last week the Board of AMA announced that it has entered into a binding Share Sale and Purchase Agreement with GUD Holdings Ltd whereby GUD Holdings Limited will acquire the automotive components and accessories division (ACAD), including the Fully Equipped business but excluding the ACM Auto Parts and FluidDrive businesses, for a gross purchase consideration of $70m.
The Board has for some time been reviewing its strategic objectives aligned with business simplification and leverage of the Group’s core capabilities to determine the optiPreview (opens in a new tab)mal focus for the AMA Group and, while the ACAD business is a strong well performing business, it was determined that a focus on the Panel Repairs sector would provide greater opportunities for investment and growth for shareholders.
The transaction is targeted for completion on 31 December 2020, subject to certain conditions typically found in a transaction of this nature. The proceeds of the sale will be used to retire debt and importantly set the Group up for continued growth in its core Panel Repairs operations.
Hopkins added: “The ACAD business is performing well and is closely aligned to the GUD business of manufacturing and retailing of motor vehicles parts and accessories. I believe that under GUD’s management the business will continue its history of strong growth for the benefit of our mutual customers and provide ongoing opportunities for its employees. We thank the ACAD management team and employees for their contribution to the AMA Group over the years and wish them continued success under the GUD banner.”