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- Automotive aftercare and accessories business group AMA (AMA) has closed the sale of its ACAD businesses to fellow ASX-lister GUD Holdings (GUD)
- The sale includes the branded Fully Equipped business but excludes the related ACM Auto Parts and Fluiddrive businesses
- AMA has received around $70 million from the deal, which will be used to bring the company’s net debt down to approximately $158 million
- At the end of trading on December 31, AMA Group closed in the grey at 80 cents per share
Automotive aftercare and accessories business group AMA (AMA) has closed the sale of its ACAD businesses to fellow ASX-lister GUD Holdings (GUD).
The sale includes the braded Fully Equipped business but excludes the related ACM Auto Parts and Fluiddrive businesses.
AMA received around $70 million from the deal, which will be used to bring the company’s net debt down to around $158 million.
Turning to the company’s overall performance, AMA has noted its recent strong performance in its first quarter has followed through into its second.
The improving sales have been attributed to the easing of COVID-19 restrictions across much of Australia, with just AMA’s Victorian business still impacted. The last of the company’s affected businesses are expected to be fully operational by early January 2021.
AMA Group CEO Andy Hopkins said the business experienced a quicker than expected return to normal repair volume and operations following the lifting of restrictions.
Andy went on say that the AMA is well placed to pursue strategic aligned acquisitions in the second half of 2021, which will be aimed at delivering growth.
Like many ASX-listers, AMA Group has faced a difficult time on the market this year. At the onset of the pandemic-induced global economic downturn AMA shares sank by more than 80 per cent.
Despite staging a considerable rally after bottoming out at 15 cents apiece in March, AMA shares currently remain around 15 per cent down on its pre-COVID levels.
At the end of trading on December 31, AMA Group closed in the grey at 80 cents per share.
