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RPM Automotive (ASX:RPM) acquires AFT Automotive Group

ASX News, Transport
ASX:RPM      MCAP $16.17M
30 May 2022 17:18 (AEST)

Source: RPM Automotive Group

RPM Automotive Group (RPM) has entered a binding agreement to acquire AFT Automotive Group for $2.4 million, split across shares and cash.

AFT Automotive has two branches of business, Equipit Group and All Terrain Design, which both specialise in four-wheel drive accessories.

The company believes the acquisition will strengthen its business through an expanded vertically integrated offering, a larger geographical footprint, and the addition of leading design software.

RPM Automotive Group (RPM) has entered a binding agreement to acquire AFT Automotive Group for $2.4 million, split across shares and cash.

AFT Automotive has two branches of business, Equipit Group and All Terrain Design, which both specialise in four-wheel drive accessories.

The company believes the acquisition will strengthen its business through an expanded vertically integrated offering, a larger geographical footprint, and the addition of leading design software.

CEO Clive Finkelstein said the acquisition is beneficial to its existing operations.

“This acquisition complements our Formula Off Road business, which manufactures 4WD products, through enhanced design capabilities and streamlined manufacturing processes,” he said.

“In addition, we have successfully worked with the management team over many years, and we are confident in the growth opportunities ahead.”

The purchase is also expected to be

RPM Automotive Group (RPM) has entered a binding agreement to acquire AFT Automotive Group for $2.4 million, split across shares and cash.

AFT Automotive has two branches of business, Equipit Group and All Terrain Design, which both specialise in four-wheel drive accessories.

The company believes the acquisition will strengthen its business through an expanded vertically integrated offering, a larger geographical footprint, and the addition of leading design software. The purchase is also expected to be immediately earnings accretive.

CEO Clive Finkelstein said the acquisition is beneficial to its existing operations.

“This acquisition complements our Formula Off Road business, which manufactures 4WD products, through enhanced design capabilities and streamlined manufacturing processes,” he said.

“In addition, we have successfully worked with the management team over many years, and we are confident in the growth opportunities ahead.”

Shares ended the day trading flat at 31 cents each.

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