Anyone have an estimate of the value of the business without the...

Anyone have an estimate of the value of the business without the panel operations?

Blackstone set to drive away with AMA Panels

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The AMA Panels acquisition would be Blackstone's biggest Australian buyout since it paid $750 million for Orica Ltd's chemicals unit in 2014. Munshi Ahmed

• by
  
• Sarah Thompson
  
• Anthony Macdonald
  
• Joyce Moullakis

Global private equity giant Blackstone is ready to write a $500 million-plus cheque for ASX-listed AMA Group's smash repairs business.
Street Talk understands AMA Group's board, led by executive chairman Ray Malone, and Blackstone were preparing to sign an agreed deal late on Wednesday.
The deal is expected to see AMA Group agree to demerge its smash repairs unit, AMA Panels, and subsequently sell it to Blackstone via a scheme of arrangement.
AMA Panels has a national footprint of 113 panel beating workshops across the country, and plans to continue to grow the business via acquisitions. It operates under a handful of brands including Mr Gloss, Rapid Repair Centre and BMB Prestige Collision Repairs.

The deal is likely to value AMA Panels at more than $500 million, while analysts reckon the rest of AMA Group, which will continue to trade as a publicly listed company, would be worth $100 million to $200 million.
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The agreement comes after Blackstone finalised due diligence and arranged funding for its bid. It is understood due diligence identified a number of potential issues. However the parties were able to overcome the issues in recent days.
Blackstone, advised by investment bank UBS, is expected to fund its bid with a debt package from lenders including Australia's National Australia Bank and Westpac Banking Corp, and Japan's Sumitomo Mitsui Banking Corporation.
Former The Carlyle Group dealmaker, Simon Moore, provided counsel to to AMA Group's board.

The deal comes 2½ months after Street Talk revealed Blackstone's interest in the unit, which came after AMA Group made a concerted effort to find a buyer. Blackstone gained due diligence with a $530 million non-binding bid, valuing AMA Panels at about $1 per AMA Group share.
AMA Group shares gained 3¢ to close at $1.05 on Wednesday.

Blackstone is buying by far the biggest part of the ASX-listed automotive aftercare and accessories company. Jonathan Chamberlain – a managing director in the firm's Sydney private equity team – is understood to have led the deal.
Bell Potter analysts expect AMA Panels to be responsible for 90 per cent of the company's profit in the 2018 financial year, and a similar proportion next year. It expects AMA Panels to have $278.6 million gross profit for the 12-months ended June 30, growing to $329.5 million in 2019.
The buyout giant is the biggest shareholder in a similar business in the United States called Service King Collision Repair Centres based in Texas, which is worth an estimated US$2 billion. Blackstone bought the majority stake in mid-2014, investing alongside private equity firm Carlyle.
The acquisition would be Blackstone's biggest Australian buyout since it paid $750 million for Orica Ltd's chemicals unit in 2014. The chemicals business, now called Ixom, is once again being prepared for sale and is expected to fetch about $1 billion.

























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