Automotive Holdings Group Limited (AHE) is pleased to announce that it has reached agreement to acquire Coventry’s automotive parts distribution business in Western Australia and Harris Refrigerated Transport, expanding its automotive parts distribution and refrigerated transport operations. Coventry’s automotive parts distribution division distributes genuine and non genuine automotive parts and accessories to the automotive, mining and industrial sectors in Western Australia. It has 26 branches across Perth and country Western Australia, employs approximately 430 people and has sales revenue of approximately $130 million per annum. The purchase consideration is approximately $29 million in cash and is comprised of $26 million for stock and the balance for other assets and employee provisions. An additional $8 million investment is required to fund a sustainable working capital position. AHG has entered into a sale and purchase agreement with the vendor of Coventry’s automotive parts distribution business.
AHG’s Managing Director, Bronte Howson, said this is a strategic acquisition of a highly complementary business to AHG’s leading automotive parts and accessories distribution business, AMCAP. “Coventry’s automotive parts distribution divisions services a wide range of mining and automotive customers through a network of regional branches which provide proximity to WA mining operations. This acquisition will give AMCAP the ability to expand its customer base and also supply a broader range of products to its existing customers.”
Harris Refrigerated Transport is a national refrigerated freight service based in Adelaide connecting with Perth, Melbourne, Sydney and Brisbane. Established in 1976, it employs 290 people across 6 locations and has sales revenue of approximately $80 million. The purchase consideration is approximately $32 million, comprising a cash payment to the vendors of $17.4 million and an assumption of certain hire purchase and chattel mortgage facilities of $14.6 million. AHG has entered into a sale and purchase agreement with the vendor of the Harris Refrigerated Transport business.
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