Blackstone bids for Australian auto panel repair business

The company confirmed receipt of a proposal following a report in The Australian Financial Review. AMA’s stock gained 6% in response to the January 29 announcement, closing at A$1.20. Two days later, it had slipped back to A$1.10, giving the overall business a market capitalization of A$572 million.

AMA’s services cover vehicle panel repairs – under 11 different brands – automotive electrical and cable accessories, and automotive component remanufacturing. The company has 93 locations nationwide and sees itself as the principal consolidator in a fragmented industry. It also partners with insurers to rollout greenfield sites backed by long-term contracts.

The panel business accounted for A$324.5 million out of AMA’s A$382.2 million in total revenue for the 12 months ended June 2017. Its contribution was A$212.1 million out of A$264.3 million the previous year. The company’s net profit increased 27.7% over the same period to reach A$20.6 million, while normalized EBITDA rose 28.7% to A$41.1 million.

According to AVCJ Research’s records, this would be Blackstone’s second private equity buyout in Australia and its first in more than three years. It previously carved out Orica’s chemicals division in a A$750 million deal. In the US, the firm is invested in Service King Collision Repair Centers, which is similar to the AMA panel business. Blackstone is also in the process of raising its first dedicated Asia private equity fund.

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• Topics
• Australasia
• Buyouts
• Support services
• Australia
• The Blackstone Group
• automobiles