The Australian Financial Review has reported that AMA is in exclusive talks to buy Suncorp’s smash repairer Capital SMART Repairs and automotive parts supplier ACM Parts following separate auctions for both businesses.
AMA, which is backed by Australian private equity firm Colinton Capital, is expected to fund the reported $440 million acquisitions with an equity raising and it is understood that UBS, Canaccord Genuity and Bell Potter Securities are on board to help the company raise approximately $200 million.
The acquisition of Capital SMART Repairs is expected to be viewed by investors as a logical move for AMA Group as Capital SMART is the No.2 player behind the AMA Group, the biggest player in the Australian collision repair industry.
As for the smaller ACM Parts, Suncorp hired Deloitte Corporate Finance’s Alex Jordan to oversee a strategic review for the division earlier this year. ACM Parts specialises in selling high-quality recycled, certified and OEM parts to Australia’s auto repair industry. It was established in 2013 as a joint venture with LKQ Corporation and in 2016, Suncorp bought LKQ’s stake.
AMA Group Limited announced the following: “The securities of AMA Group Limited (‘AMA’) will be placed in trading halt at the request of AMA, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 2 October 2019 or when the announcement is released to the market.”
As reported in the August Issue of the National Collision Repairer: “AMA Group is a serious player and will continue to dominate the landscape as they aggressively pursue their growth strategy.”