RPM Automotive Group to acquire AFT Automotive Group

RPM Automotive Group, which is engaged in the Australian automotive aftermarket, has agreed to acquire AFT Automotive Group for AUD 2.4 million in a cash and stock deal.

AFT Automotive Group, which is also based in Australia, is made up of Equipit Group, a wholesaler of 4WD accessories, and All Terrain Design, a designer of 4WD motor vehicle accessories.

The group owns the MAX 4X4 Accessories brand, which serves the 4WD industry. The current product range of MAX 4X4 Accessories includes the MAX GEN II Bull Bars, Rails, and Side Steps.

All Terrain Design offers services such as 3D scan tooling, custom design work for new products, and CAD and technical drawing.

RPM Automotive Group said that the deal expedites its growth in revenue and earnings by vertical integration, cross-selling between the retail and wholesale operations, geographic expansion, and enhanced operating leverage.

Clive Finkelstein — RPM Automotive Group CEO said: “This is a strategically important acquisition for RPM, strengthening our position in the fast-growing 4WD accessories market and significantly expanding our vertically integrated offering in the automotive afterparts market through enhanced capabilities in design and manufacture.

“The continued expansion of our wholesale business complements our strong retail accessories distribution through greater product range and supply chain control. This acquisition complements our Formula Off Road business, which manufactures 4WD products, through enhanced design capabilities and streamlined manufacturing processes.”

The deal, which is subject to the meeting of preceding conditions, is expected to close on or by early July 2022.