Australian automotive aftermarket firm RPM Automotive Group says its Chapel Corner Tyres $2.55 million earnout payment to vendors will be paid half in cash and half in equity.
It says the earnout is about $0.9 million above expectations due to a stronger than anticipated performance of the underlying business.
The acquisition has “enhanced RPM’s Wholesale Tyre Division by adding scale, warehousing capacity and creating significant cross-selling opportunities for our broader product range”, says RPM chief executive and managing director Clive Finkelstein.
“During the period, Chapel Corner Tyres exceeded our expectations, despite challenging market conditions.
“Notably, gross profit within the business has improved 3%, and expenses have been reduced by 25%, leading to a substantial 21% increase in EBITDA. These results, alongside our integration and new [recycling] initiatives, positions Chapel Corner Tyres as an outstanding business unit within the RPM Tyre Division.”
Finkelstein says Stephen Nash joins Joe De Sensi’s team as a key executive in the tyre division, taking on the role of operations manager.
RPM Automotive Group is expanding its national footprint in the automotive aftermarket and has business units selling wheels, tyres, accessories and apparel across wholesale and retail customers, with key brands including Revolution Tyre Services, Revolution Racegear and RPM Autoparts.
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