Automotive company GUD
(ASX:GUD) has entered a share purchase agreement to acquire AutoPacific Group (APG) for $744.6 million.
GUD will buy the business from Australian private equity investor Pacific Equity Partners, and will launch a $405 million equity raising to help fund the acquisition.
AutoPacific is one of the country’s top suppliers of towing, functional accessories and trailering products, best known for its Hayman Reese towbars. It designs and makes products with facilities in Australia, New Zealand and Thailand.
"APG represents a portfolio of market lading brands and has longstanding customer relationships across diverse channels. With innovation at the heart of what we do, we see GUD as a natural fit," said APG CEO Jason Kieseker.
GUD is funding the acquisition via an institutional placement to investors, raising $405 million. Under the equity raising, GUD will issue around 39 million new shares at $10.40 per share, worth $75 million in total.
"The combination of GUD's existing business and APG, firmly establishes GUD as a leader in 4WD accessories and trailering in Australia and New Zealand," said GUD chairman Graeme Billings.
Shares in GUD Holdings
(ASX:GUD) are in a trading halt and last traded at $12.03.
Image from: https://gud.com.au/
