AUTOMOTIVE parts business Coventry Group has made its third acquisition in six months, this time snapping up Alice Springs-based Southcott Auto Centre for $500,000.
The Southcott business distributes auto parts and accessories to trade and retail customers in Alice Springs and surrounding areas.
The acquisition will be bolted on to Independent Motor Mart, a company Coventry bought in July for $8.75 million
In an announcement to the Australian Stock Exchange Coventry CEO Chris Glenn said: "The acquisition will strengthen Independent Motor Mart’s branch network in the Northern Territory and further increase Coventry’s leading position in the Northern Territory market".
IMM has four outlets in Darwin and one in Katherine.
The business is forecast to achieve operating revenue of $9.7 million and earnings before interest and tax of $1.1 million for 2004-05 after acquisition costs are added back.
Southcott had sales of more than $1.3 million for the 2003-04 financial year.
One week before it made the IMM purchase, Coventry acquired Queensland auto parts players Thompson’s Spare Parts and Rod Smith Parts & Bearings.
That purchase gave Coventry four outlets in south east Brisbane and on the Sunshine Coast, making it the second largest player in the Queensland auto parts distribution industry.
The company’s business had been struggling in Queensland and New South Wales due to a lack of scale, something the purchase brought.
Coventry refused to divulge the purchase price but said it would exceed the company’s 12 per cent after tax return on shareholder funds hurdle rate.