Investment company Hellaby Holdings today announced the acquisition of two businesses which will further strengthen its position in the automotive parts distribution and truck servicing sectors.
On April 30 Hellaby subsidiary New Zealand Trucks acquired Diesel and Machinery Services, a Waikato-based company which provides maintenance, repair and engineering services to the truck industry. Hellaby has also unconditionally agreed to purchase Melbourne-based JAS Oceania, an Australian national distributor of auto electrical, automotive air conditioning and lighting components to repair centres, workshops, automotive parts distributors and retailers.
At settlement date of June 1 2015, JAS Oceania will become part of the Hellaby’s automotive division. Hellaby MD John Williamson said the total value of the two acquisitions was less than NZ$25 million, and they were being funded through existing group debt facilities. The businesses have combined annual revenues of around NZ$50 million and are expected to collectively increase Hellaby’s annualised EBITDA by around NZ$5 million. The impact on earnings per share will be positive and immediate.
Williamson said Hellaby was delighted with the acquisitions of JAS Oceania and DAMS. “Both these businesses are strategically significant and complementary to existing subsidiaries. Not only are they very good businesses in themselves, but they will also add further value to Hellaby through the synergies they will achieve with other businesses in the group.
“JAS Oceania has a highly complementary product range to Hellaby’s other Australian automotive businesses, Federal Batteries and Diesel Distributors. Its 19 branch network is scalable and further strengthens Hellaby’s Australian market coverage. We are also pleased that the vendors of JAS Oceania will remain with the business in leadership positions.
“DAMS will significantly strengthen New Zealand Trucks’ ability to service customers in the upper North Island. It brings strong customer relationships and an excellent workshop facility to the business, and will continue to be led by one of the vendors.”
Williamson said Hellaby was continuing to seek value-accretive acquisition and divestment opportunities. “The reshaping of our portfolio continues, and with JAS Oceania and DAMS now successfully added to the group, we are focusing on further initiatives in the pipeline,” he concluded.
