Automotive accessories giant AMA Group (ASX:AMA) has entered into a binding agreement to acquire Capital Smart Repairs Australia from Suncorp (ASX:SUN) for $420 million.
The AMA Group is set to acquire 90 per cent of Capital Smart Repairs Australia based on an implied enterprise value (100 per cent basis) of $420 million and will also acquire 100 per cent of ACM Parts from the insurance and banking corporation for $20 million.
As part of the deal a 25.5 year service partnership between Suncorp (ASX:SUN) and AMA (ASX:AMA) has been locked in.
The transaction will be funded through a fully underwritten $216 million equity raising and new debt facilities.
AMA CEO Andy Hopkins says the acquisition of Capital S.M.A.R.T represents a strategically compelling and highly attractive opportunity for their customers and shareholders.
Owned by Suncorp under joint ventures Capital S.M.A.R.T specialises in low to medium severity repairs in metropolitan areas in Australia and New Zealand.
Shares in AMA (ASX:AMA) last traded at $1.22.