- RPM Automotive Group (RPM) has entered into an agreement to purchase Traralgon Tyre Service (TTS) for nearly $1.5 million
- TTS supplies, fits and services passenger, commercial and industrial tyres in the Gippsland region in Victoria
- RPM says the acquisition will fit neatly in its repairs and roadside division, where it will join five existing businesses
- Under the acquisition, TTS owner Tony Mann will stay on as company director
- On the market this afternoon, RPM is up 7.14 per cent and is trading for 22.5 cents per share
RPM Automotive Group (RPM) has entered into an agreement to purchase Traralgon Tyre Service (TTS) for $1.47 million.
TTS supplies, fits and services passenger, commercial and industrial tyres in the Gippsland region in Victoria. The company has been around for 25 years and has a reputation for the best quality service and supply.
RPM says the newly purchased business will neatly fit in its Repairs and Roadside Division, where it will join five existing businesses.
Due to confidentiality agreements, the company is unable to report the full disclosure, however, it did say TTS had reported an FY20 revenue of $4.25 million with a 9 per cent earnings before interest, taxes, depreciation, and amortisation (EBIDTA).
The business valuation was around 3.8 times of the EBITDA and the purchase price of $1.47 million is made up of 50 per cent script and 50 per cent cash. This price is subject to adjustments and excludes GST.
Both the bushfires and COVID-19 have impacted TTS, however, the resilience has ensured that it has thrived while other competitors have suffered.
Under the acquisition, TTS owner Tony Mann will stay on as company director.
“We provide solutions to applications, our customers charge us with problems that they face and it is our responsibility to solve those problems and provide long-term workable solutions,” Tony said.
“This is what we pride ourselves on and therefore we have been able to retain our customers’ loyalty for so many years,” he added.
On the market this afternoon, RPM is up 7.14 per cent and is trading for 22.5 cents per share at 2:39 pm AEDT.