Fellow small-cap GUD Holdings is looking to beef up its automotive aftermarket parts business to make the most of a COVID-19 inspired second-hand care spree.
The easiest way to do that is via a bolt-on acquisition and GUD has made it abundantly clear to shareholders it is scouting for opportunities.
GUD has Macquarie Capital on board for help with a deal – as Street Talk revealed on Tuesday night – and had what it called “strong balance sheet metrics” at June 30. Net debt was worth 1.7-times earnings, while gearing (on a net debt/net debt + EBITDA) basis was 34.1 per cent.
So perhaps we shouldn’t be surprised to hear GUD is in late-stage talks to acquire AMA Group’s APAS. It is understood GUD has all but seen off some competing interest, including from buyout firm Pacific Equity Partners which owns trailer parts and bull bars company AutoPacific Group (what