Sign up Australia
Proactive Investors - Run By Investors For Investors

AMA Group to demerge automotive component, accessory and procurement business

The post-demerger group will be acquired by funds advised by private equity asset manager Blackstone for $508 million.
Vehicle crash repairs
The restructure is aimed at ensuring each division can realise its full potential

AMA Group Ltd (ASX:AMA) intends to demerge its automotive component, accessory and procurement (ACAD) business and enter a $508 million transaction for its remaining vehicle panel repair business.

The transactions are part of a company restructure aimed at ensuring each division can realise its full potential.

New ACAD business to list on ASX

AMA’s ACAD business will be spun out into a new company to be listed on the ASX.

It will incorporate the consumables and parts procurement function of the panel repair business.

The restructure also involves the purchase of the post-demerger AMA Group and its remaining vehicle panel repair business by funds advised by global private equity asset manager, Blackstone.

This transaction has an enterprise value of $508 million.

Important stage in development

Executive chairman Ray Malone said “Today is an important point in the development of AMA Group.

“The board has decided to address the challenge of funding two growing but distinct businesses by separating the ACAD business into a new ASX-listed company.

“Each business will have its own management team, growth plans and funding strategy.

“This separation will ensure that neither business has its prospects limited by the competing demands of the other business for board and management attention and financial resources.

“Each business will be able to realise its full potential with significant benefits to customers, employees and shareholders.”

Prospects of procurement business

Malone said he was especially excited about the prospects of the new procurement business.

“AMA Group is truly a global leader in sourcing consumables for the vehicle panel repair industry.

“This is reinforced by our well-advanced discussions with a number of large international vehicle panel repair industry consolidators about servicing their consumables and parts needs.

“Based on the significant potential cost savings for international vehicle panel repair operators, we expect to rapidly grow this new business.”

View full AMA profile View Profile

AMA Group Ltd Timeline

Related Articles

Data servers
July 31 2018
The company is expected to list on the main board of the LSE in September
An energy plant
August 13 2018
The exclusive contract will run its course for two years and includes a one -year extension option
electric vehicle charging
July 04 2018
AMP wants to add 25 sites in Greater London and extend its reach into the North-West around Liverpool and Manchester

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use