Colinton, AustralianSuper, Myer buy stake in AMA
Colinton Capital, a middle market private equity firm established by Simon Moore, formerly Australia head at The Carlyle Group, has participated in a A$68.6 million ($49.7 million) investment in automobile aftercare services provider AMA Group.
Colinton will take an up to 2.23% stake in the company, while AustralianSuper and Myer Family Investments will acquire 9.67% and 1.49%, respectively. Most of the shares will be acquired from AMA management – including Ray Malone, who will leave his executive chairman role – but there will also be a small placement of new shares. Moore will join the AMA board as deputy chairman.
The deal comes five months after the collapse of a proposed A$508 million carve-out of AMA’s panel repair business – by some distance the company’s largest division, accounting for 85% of revenue – by The Blackstone Group. It fell through because the Australian Tax Office turned down AMA’s request for demerger relief.
“The transactions neatly solve the challenge posed by the significant shareholding of mine, Andrew Hopkins and the panel repair business management team, while also providing the company with the working capital needed to expand its new procurement business,” Malone said in a statement.
AMA has 114 panel repair shops nationwide and see itself as the principal consolidator in a fragmented industry. The automotive component, accessory and procurement (ACAD) business, covers automotive electrical and cable accessories and automotive component remanufacturing.
The company reported A$509.8 million in revenue for the 12 months ended June 2018, up from A$382.2 million a year earlier. Over the same period, EBITDA rose from A$37.2 million to A$43.6 million and net profit fell from A$17.4 million to A$15.4 million.
Colinton - which currently operates on a deal-by-deal basis - secured its first deal in April with an agreement to buy marine engineering business AMS Group. The A$70 million acquisition was supported by the likes of Myer Family Investments, MLC Private Equity, and listed investment firm Washington H Soul Pattinson.
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