GUD Holdings Strengthens Its Automotive Portfolio

GUD Holdings Limited (GUD) today announced that it has entered into an agreement to acquire 100% of the shares in the businesses of Australian Clutch Services Pty Ltd (ACS), and subsidiaries XCLUTCH USA Inc and ACS NZ Pty Limited for an enterprise value of $32 million and is subject to customary purchase price adjustments. ACS achieved a FY20 normalised EBIT of $5.7 million.

Completion of the acquisition is expected to occur on 1 March 2021.

GUD Holdings Limited’s Managing Director and Chief Executive Officer, Mr Graeme Whickman stated “This is a strategic acquisition of a strongly performing business which complements GUD’s automotive portfolio. This acquisition, at a compelling multiple of 5.6 times follows in close succession to GUD’s acquisition of companies formerly comprising AMA’s ACAD business, is further demonstration of GUD’s growth strategy”.

GUD Holdings Limited Results for the Half Year Ended 31 December 2020

Financial Highligts

~ Revenue up 10.7% on the prior corresponding period (PCP)

~ Underlying1 EBIT up 17.6% on the PCP

~ Underlying1 NPAT up 18.4% on the PCP

~ JobKeeper payments of $2.8 million were more than offset by employee care and financial support programmes and the incremental COVID-19 operating costs

~ Fully franked interim dividend per share (DPS) of 25 cents, in line with the PCP, representing a payout ratio of 76% of underlying NPAT excluding JobKeeper