AMA Group Limited (ASX:AMA)
says they will acquire Australia’s largest accident repair group Gemini Accident Repair Centres.
The addition of the Gemini centres will expand AMA Group’s presence to 70 centres across Australian and deliver the company entry into the New Zealand market.
AMA says the deal will bring together two leading companies in the highly fragmented panel repair market and generate a number of synergies and cost savings.
AMA will pay up to $100 million in the deal if a financial performance hurdle is met within the next 3.5 years.
An upfront cash payment of $27-$28 million will be funded from current cash reserves.
AMA Group reported a net profit of $9.09 million for the 2015 financial year.