- GUD Holdings (GUD) enters a trading halt upon announcing it will acquire vehicles accessories maker AutoPacific Group (APG) for $744.6 million
- GUD says the buy aligns with its goal of becoming an integrated leader in 4WD accessories and trailering in Australia and New Zealand
- Majority of the purchase is being funded through an institutional placement and fully underwritten entitlement offer to raise a combined $405 million
- The company expects to come out of the trading halt on December 1 and shares last traded at $12.03 on November 29
GUD Holdings (GUD) entered a trading halt relating to the institutional component of an accelerated entitlement offer.
Soon after entering the halt, the equipment manufacturer announced it will acquire AutoPacific Group (APG) for around $744.6 million.
The company said the purchase aligns with its goal of becoming an integrated leader in 4WD accessories and trailering in Australia and New Zealand, with future export potential.
APG is also expected to positively contribute to GUD’s earnings and deliver low double-digit earnings per share accretion in the 2022 financial year.
Further, APG is forecast to achieve $80 to $84 million of earnings before interest, tax and amortisation in 2022.
GUD Chairman Graeme Billings commented on the acquisition.
“The combination of GUD’s existing businesses and APG, firmly establishes GUD as a leader in 4WD accessories and trailering. We see ourselves as the natural owner of the APG business and welcome Jason Kieseker and his team to GUD,” he said.
APG CEO Jason Kieseker also commented on the deal.
“With innovation at the heart of what we do, we see GUD as a natural fit for APG and we look forward to leveraging the synergistic opportunities that joining GUD presents,” Mr Kieseker said.
The acquisition is being funded through a combination of a $282 million acquisition debt, $75 million of new GUD shares, and a fully underwritten $405 million equity raise.
The equity raise will be in the form of a $120 million institutional placement and a one-for-3.46 accelerated non-renounceable entitlement offer to raise $285 million.
In total, 39 million shares will be issued under the equity raise at $10.40 per share, which represents a 13.5 per cent discount to the last closing price of $12.03 on November 29.
GUD expects the transaction to be completed in January 2022.
The company expects to come out of the trading halt on December 1.
Shares last traded at $12.03 on November 29.