- RPM Automotive Group (RPM) has executed a purchase agreement to acquire all shares in major tyre distributor Citic Autoparts
- RPM will pay a purchase price of $3.2 million, in exchange for 100 per cent of shares in Citic Autoparts
- Citic Autoparts currently has operations in Victoria, Queensland, New South Wales, and Western Australia
- Through the acquisition, Citic will be incorporated into the company under the new name RPM Autoparts
- RPM Automotive Group closed 2.56 per cent in the green for 20 cents per share
RPM Automotive Group (RPM) has executed a purchase agreement to acquire all shares in major tyre distributor, Citic Autoparts.
Since beginning in 1994, Citic has become a major tyre distributor, with a comprehensive range of available products. The acquisition has operations in several Australian states, including Victoria, Queensland, New South Wales, and Western Australia.
Citic is able to boast supply relationships with a number of blue-chip customers, including Yokohama and Tyrepower.
RPM will pay a purchase price of $3.2 million, in exchange for 100 per cent of shares in Citic. The acquisition will provide RPM with various benefits, including the ability to leverage brands and products within Citic’s current offerings.
In related news, RPM has entered into an exclusive agreement to distribute Jinyu TBR (Truck & Bus/Commercial Tyres). The company intends to offer this particular range through its newly acquired Citic distribution platform.
While RPM Automotive’s acquisition of Citic will not take effect until October 31, the parties have agreed to an immediate name change for Citic. The company will be incorporated into RPM under a new name, ‘RPM Autoparts’.
RPM Automotive’s CEO, Clive Finkelstein, commented on the company’s latest acquisition.
“I am delighted to announce the acquisition of the Tyre Distribution Company to be known as RPM Autoparts Pty Ltd, which is part of the natural progression for RPM,” he said.
“The Group is expanding its national footprint and this deal not only achieves that, it broadens our range of products as well as customer base, while complementing our existing operations,” he added.
RPM Automotive Group closed 2.56 per cent in the green for 20 cents per share.