Automotive repair and accessory group, AMA Group Ltd, proposed to spin off its vehicle smash repair businesses into a separate company, selling out for about $508 million.
It had also planned to create a new listed company for its automotive protection products, accessories and workshops while selling its stake in its smash repair businesses to a private equity company based in the United States and a Western Australia-based private company.
Service King USA
AMA, which is a publicly listed company that is 14.6 per cent owned by its CEO Ray Malone, owns 113 smash repair sites around Australia including those operating under the Gemini (Australia and New Zealand), Rapid, BMB, Shipstream and Mr Gloss names.
This repair group was intended to be sold to private equity company Blackstone for $508 million. Blackstone owns Service King, one of the biggest smash repair groups in the US.
Under the deal, Blackstone would take 51 per cent and WA businessman Andrew Hopkins – who previously owned Gemini and sold it in 2016 to AMA for $100 million – would have 49 per cent.
But one of the terms of the purchase of the smash repair group from AMA for 86 cents a share – valuing the group at $508 million – was a capital gains tax relief for the purchase.
The ATO last week knocked that back, forcing Blackstone to abandon its plans and for AMA to likewise shelve plans for the demerger of its accessories business.
AMA’s businesses outside of the smash repair group include Deering Autronics outlets, FluidDrive, Roo Systems, ASNU transmission products, Dolium wholesalers, Alanco auto electricians, Custom Alloy, Barder fabricators, ECB bullbars, and Uneek off-road accessories.
AMA purchased all the shares in Australian Solutions Group Ltd in January 2018. ASGL was a listed company that combined retailers, suppliers and manufacturers of 4WD products. Those businesses have now been folded into AMA and ASGL has been delisted.
By Neil Dowling
Service King USA
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