RPM Acquires Chapel Corner Tyres for Wholesale Tyre Division Expansion

RPM Automotive Group Limited (ASX: RPM) has announced its acquisition of Chapel Corner Tyres, an automotive parts wholesaler and retailer based in the Southern Melbourne metro area. The acquisition aims to expand RPM's wholesale tyre division distribution network in Victoria, Australia. Chapel Corner Tyres, with its strong passenger and 4x4 wheel and tyre offerings, generated AU$18.5 million in revenue and AU$900k in EBITDA in FY23.

The acquisition is expected to contribute an annual EBITDA of AU$1.15 million initially. It provides cross-selling opportunities for RPM's broader product range to a larger customer base and potential cost synergies of up to AU$500k through consolidation of distribution, shared services, access to new customers, and increased coverage in Victoria. The culturally and operationally aligned Chapel Corner Tyres management will be retained. The acquisition is valued at AU$3.3 million, with consideration to be paid 50% upon completion and 50% in 12 months, consisting of 50% cash and 50% equity.

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