- RPM Automotive (RPM) has completed the purchase of Citic Autoparts and took full ownership of the business on November 1
- As a result, Citic Autoparts has undergone a name change and is now known as RPM Autoparts (AUT)
- RPM executed a purchase agreement in mid-September to acquire all shares in Citic Autoparts for $3.2 million
- For the eight months leading up to FY21, AUT is expected to generate roughly $12.75 million in revenue and $500,000 in operating profit
- This is expected to significantly increase in FY22 as a result of the consistency of supply
- RPM has ended the day 12.2 per cent in the green with shares trading for 23 cents each
RPM Automotive (RPM) has completed the purchase of Citic Autoparts and took full ownership of the business on November 1.
As a result, Citic Autoparts has undergone a name change and is now known as RPM Autoparts (AUT).
RPM first announced its intention to purchase Citic Autoparts in mid-September when it executed a purchase agreement to acquire all shares in the company for $3.2 million.
AUT began its tyre trading business in 1994 and is now a major distributor in the Australian tyre market.
It operates in a space similar to RPM’s other subsidiaries, Spider GT in its Wheels and Tyres Division, as an importer, wholesaler and distributor of tyres.
For the eight months leading up to FY21, AUT is expected to generate roughly $12.75 million in revenue, and $500,000 in operating profit.
This is expected to improve significant in FY22 as a result of consistency of supply and post COVID-19 market conditions.
“The plan is to grow the Wheels and Tyres Business and this acquisition gives us the platform to achieve our targets while the cross-pollination of products and services only serve to complement our existing businesses,” Chairman Grant Carman said.
RPM has ended the day 12.2 per cent in the green with shares trading for 23 cents each in an $18.61 million market cap.