Eagers firm sells Skipper Transport Parts to Heatleys
Stealth Global Holdings subsidiary seals $4.2 million deal with AMCAP
Truck parts consolidation sees Stealth Global Holdings (SGH) subsidiary Heatley Sales (Heatleys) buy Skipper Transport Parts from Eagers Automotive firm AMCAP for $4.2 million.
STP is a Western Australian distributor of industrial maintenance, repair and operating, automotive, truck and trailer, mining, bus and agriculture products.
The acquisition includes branch store locations in Perth, Albany, Esperance, Karratha and Port Hedland, onsite store operations at several customer locations across Western Australia and Queensland, 34 employees, about 1,250 customers and 300 suppliers.
SGH forecasts STP to deliver revenue of $18.m and EBITDA of $1.1m within the first 12 months following the completion of the transaction.
"The acquisition of Skipper Transport Parts fits Stealth’s stated strategy to expand its business through disciplined organic and acquisition growth plan," SGH group managing director Mike Arnold tells the Australian Securities Exchange (ASX).
"The STP purchase and merger is transformational in terms of a significantly expanded product and high-touch solutions offering, distribution supply chain infrastructure, e-commerce platform and deeper customer and supplier relationships
"STP’s physical branch and onsite stores network will allow us to enter new geographic markets to strengthen our market position and provide an endless assortment product offering suitable for customers of all sizes.
"Our strict criteria on strategic fit, price and delivering on long term value to our shareholders is always at the core of our decision making.
"Skipper Transport Parts meets these requirements."
Some 1,250 customers will transfer in the sale purchase and continue to be supported by sales and service teams, branch stores, fulfillment operations and onsite store contracts teams within several blue-chip customer locations that include Linfox, Centurion Transport and Qube Logistics, SGH notes.
Stock relocation from AMCAP’s distribution centre to Heatleys’ main DC is scheduled for late July followed by integration programs.
"STP is highly regarded as a market leading business in Western Australia and for its onsite solutions to customers," Arnold adds.
"The depth of STP’s wide-ranging Industrial MRO products in the customer markets of automotive, truck and trailer, bus, agriculture and mining, complemented with Stealth’s existing business, will give the merged group significantly more scale and leverage from its distribution platform, branch store footprint, network reach, buying power and its broad in-stock product offering where Stealth can hold an advantaged market relevant position.
"Importantly, comprehensive value is created by offering our customers an endless assortment of brands, products and solutions that deliver better customer experiences with more touch points instore, onsite, online, click & collect and delivery options, supported by experienced sales, service, technical and distribution professionals.
"Stealth is well positioned to continue growing its business and capitalise on investment and growth opportunities over coming years, with a focus on capital discipline.
"This is underpinned by our expanding diversified business portfolio, resulting in a steady flow of recurring sales activity."