It has sold Capital SMART, Australia’s second-biggest smash repairer and one in which Suncorp has a 95 per cent stake, and parts business ACM Parts.

Both were the subject of a review by Suncorp and its advisers Luminis Partners in March.

The buyer is AMA Limited, which owns a string of smash repair and parts and accessories businesses including Gemini, RPM and GoRapid. The acquisition of Capital SMART makes it the nation’s biggest smash repair company.

Suncorp will retain 10 per cent of Capital SMART and have a seat on its board, indicating the insurer will work closely with AMA.

In its statement to the Australian Securities Exchange, Suncorp said: “The agreement maintains Suncorp’s competitive advantage and we look forward to working closely with AMA as an ongoing partner.”

It said that customers would continue to have access to market-leading repairs through “its existing valued network of smash repair partners”.

The sale also includes ACM Parts which AMA bought for $20 million. ACM was a joint venture in second-hand car parts established in 2013 with US-based parts conglomerate LKQ and wound down in 2016.

AMA group CEO Andrew Hopkins said the acquisition of Capital SMART and ACM Parts “further strengthens our longstanding relationship with Suncorp”.

The relationship between Suncorp and AMA is a 15-year Motor Repair Services Agreement (MRSA), with two five-year options by Suncorp to extend.

“The MRSA preserves the cost advantages that Capital SMART has delivered to Suncorp over the past eight years and provides protection to ensure that defined service levels are maintained,” Suncorp’s statement said.

By Neil Dowling