RPM Group (ASX:RPM) completes acquiring AFT Automotive

July 11, 2022 12:54 PM AEST | By Ritwika

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RPM Group (ASX:RPM) completes acquiring AFT Automotive — Image source: Image source: © Utah778 | Megapixl.com

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Highlights:

This acquisition will help RPM to add up to AU$120 million to its annualised revenue run rate.

The acquisition is likely to complement and strengthen RPM’s business.

ASX-listed automotive company RPM Automotive Group Limited (ASX:RPM) announced today that it has successfully completed the acquisition of AFT Automotive Group. AFT Group also incorporates Equipit Group, which deals in the wholesale business of premium 4x4 accessories and features All Terrain Design, 4WD motor vehicle accessories designer.

What are the perks of this acquisition?

As of now, the company is expecting its annualised revenue run rate to increase by around AU$120 million because of this acquisition. RPM believes that this gain in its annualised revenue run rate is going to be driven by high customer engagement and good practices of inventory and supply chain management.

Furthermore, the board of RMP Group said that AFT Group’s acquisition has put the company in a strong position in the current fast-growing 4WD accessories market.

RPM stated that AFT’s 4WD accessories are going to complement RPM’s existing retail accessories business as it will allow customers to choose from a wider range of varieties.

Meanwhile, the acquisition will also allow RPM to utilise All Terrain Design’s design software to develop customised designs for RPM’s internal divisions as well as for external customers.

On the other hand, RPM will also help AFT Group to spread out its current wholesale processes from Queensland to across the country.

After this announcement was released on the ASX, RPM’s shares were spotted trading at AU$0.280 per share at 11:36 PM AEST on the ASX today (11 July).

About RPM Automotive Group Limited:

An overview of RPM’s share price performance on the ASX:

Shares of this automotive company could not perform well during last year the past one year as it has shed more than 17% on the ASX. Meanwhile, on Y-T-D basis, RPM’s share price has fallen over 6% (as of 11:34 AM AEST on the ASX today, 11 July).

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