GUD Holdings to buy all Disc Brakes Australia shares

Company News

by Rachael Jones

Manufacture and importation company GUD Holdings (ASX:GUD) today announced that it has entered into an agreement to purchase all of the shares of Disc Brakes Australia (ASX:DBA).

DBA operates in the automotive aftermarket through supplying a range of disc brake rotors, brake drums and disc brake pads.

Disc Brakes Australia was originally established by the Joseph family and it markets its products and services under the DBA brand.

Its customer base includes the major automotive industry distributors – Bapcor, Repco and Supercheap – along with other automotive wholesalers and performance specialists.

The DBA business has an annual sales turnover of around $20 million and generates an annual EBIT of around $3 million. Consideration for the acquisition is $20 million, with a net working capital adjustment at Completion.

Shares in GUD Holdings (ASX:GUD) closed 0.62 per cent higher to $13.00 yesterday.