Automotive parts supplier Allomak Ltd has made its second Western Australian acquisition, agreeing to buy Alanco Australia Pty Ltd for an undisclosed sum.
This followed its purchase of Perth Brake Parts, announced in February.
According to Allomak's annual report, it acquired Perth Brake Parts on January 1, 2007, (both the business and certain business assets of Perth Brake Parts Pty Ltd), for scrip and cash in a deal worth $2.7 million. The consideration was ordinary shares at a fair value of $857,344 and cash of almost $1.7 million. There were acquisition costs of $168,808 and almost $200,000 in trade creditors and other payables.
Perth Brake Parts Pty Ltd is a wholesale specialist in the remanufacturing of brake parts and the sales and distribution of new brake parts servicing and the dealer/workshop aftercare market.
ALLOMAK ACQUIRES PERTH BASED ALANCO AUSTRALIA
Allomak Limited (ASX:AMA) today announced it has entered into an agreement to acquire the operations of Alanco Australia Pty Ltd. Perth based Alanco was established in 1987 and has grown to be a dominant supplier in Western Australia as an importer and distributor of auto electrical, communications and auto accessories products.
Mr Rob Allan, Managing Director of Allomak, said: "We are excited about Alanco becoming part of the group as the strength of the distribution base built by Alanco in the key workshop market will significantly enhance our presence in WA.
"We believe that excellent synergies exist as part of the Allomak group in opening up opportunities for Alanco on the East Coast and further enhancing the supply of product to Alanco's existing customers through current Allomak group companies."
Mr Alan Golding, the Managing Director of Alanco said: "We have built Alanco by constantly providing quality products and superior service. Now combining with the Allomak team, Alanco will be able to realize its goals of national expansion which will be of major benefit to our suppliers, employees and customers.
"I am delighted that the twenty years of hard work and effort by all involved will be passed on to a dynamic and progressive company such as Allomak and I look forward to being a part of the continued growth plans of Alanco through our new association with Allomak."
Allomak advises that the acquisition earnings multiple of the transaction, based on the expected performance from Alanco in FY2008, is within the parameters of previous acquisitions and within the previously advised target range. The acquisition payments will be a combination of cash and Allomak equity. By the time of expected completion and some integration costs Alanco is expected to contribute approximately $700,000 EBIT to the FY2008 results.
About Allomak Limited
Automotive aftermarket specialist Allomak is a listed public company focused on acquisition and
operation of good businesses in the automotive aftermarket and related industries.
Allomak is building its business through growth, support and identification of synergies between existing operating
companies as well as further acquisitions.
Businesses currently in the group include ECB, Dyno Dynamics, Autolac, Fluidrive Transmissions, Perth Brake Parts, Dual LPG, LP Gas 1, Diesel Test and Mr Gloss.