RPM Automotive Group Ltd. has signed an agreement to purchase Safety Dave Pty Ltd. that will allow the company to extend into Australia’s rising camping and caravan trailer sectors.
The parties have reached an agreement on the total amount of consideration for the purchase at AU$9.5 million. This comprises 70 percent in cash and the remaining 30 percent in RPM shares.
Looking into the future, Safety Dave is expected to bring an annual revenue in the range of AU $10 million to the company and will immediately become value and earnings accruing.
In a statement on the acquisition, RPM CEO Clive Finkelstein commented: “The acquisition of Safety Dave is a key milestone for our business, supporting our vision of becoming a leader in the Australian automotive aftermarket.”
“The addition of this iconic Australian aftermarket brand will see RPM enter the fast-growing recreational vehicle market of caravans and camper trailers that has experienced strong growth of 26.7% over the last five years.”
From now on, RPM will provide Safety Dave with the infrastructure and logistics capacity to provide better service to the camper trailer, caravan, and RV industry while expanding its client base to include Carline Automotive Group and Formula Offroad’s nationwide distribution platform.
RPM’s Performance and Accessories Division is supported by attractive macro-industry fundamentals, with new recreation vehicle (RV) registrations for Australia rising by 4.2 percent in 2020 and the division returning EBIT higher than 20 percent.
The division is viewed as an opportunity to accelerate growth in the coming twelve months, with substantial results and projections for the coming three to five years. This is due to the significant increases in the demand for auto parts and accessories across the nation.
About Safety Dave
Established in 2002, Safety Dave is a market leader in specialist safety products for caravans, and campervans with some of its products used in both the home and motor vehicles.
The business specializes in safety products such as rear vision systems, tire pressure monitoring systems, defibrillators, first aid kits, and fire safety products.