RPM Group completes Traralgon Tyre Service buy


Latest acquisition in busy heavy vehicle aftermarket sector

RPM Group completes Traralgon Tyre Service buy
RPM Group comprises a sprawling portfolio

 

Listed automotive aftermarket firm RPM Group has snapped up regional Victorian commercial heavy vehicle tyre provider Traralgon Tyre Service (TTS).

Based in the Gippsland region for more than 25 years, TTS specialises in the supply, fit and servicing of passenger (PCR), commercial (TBR) and industrial (OTR) tyres for: trucking, forestry, agriculture and farming, the retail passenger market (4WD, LDV and SUV market); and major mining operations in the region.

It joins RPM’s Repairs and Roadside division, which includes subsidiaries Air Anywhere and Gully Mobile Tyres, to gain operational synergies, cost reductions, and the ability to offer more services to existing and new clientele, RPM states.

"I am delighted to announce that we have completed the transaction with Traralgon Tyre Service, a perfect strategic fit for the RPM Group and a business that could be the blue-print for our future acquisitions with its involvement in mining, agriculture, forestry and trucking industries," RPM executive director Lawrence Jaffe says.


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RPM notes rapid growth in this sector, "one RPM has identified as its growth channel and the focus of its short-term expansion program", benefiting from Covid-19 tailwinds and increased driving activity amid international border closures.

The sale price is listed as $1.54 million, with TTS’s FY20 revenue at $4.25 million and earnings before interest, taxes, depreciation, and amortisation (EBITDA) at $370,000.

RPM expects TTS revenue grow to $6.5m in FY2022 with the recent securing of specific contracts in regional Victoria.

RPM Group notes it remains on track for record revenues of $49.2 million in FY21 (44 per cent increase from FY20), and record EBITDA of $4.7 million (37.6 per cent increase from FY20).

Owner Tony Mann will remain on as TTS' director in charge of operations.

"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," he says.

"This is what we pride ourselves on and therefore we have been able to retain our customers’ loyalty for so many years."

 

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