Australia’s RPM to expand tyre wholesaling through acquisition

Effective 1 September 2023, Australia’s RPM Automotive Group Limited is acquiring regional wholesaler and retailer Chapel Corner Tyres. By purchasing this Melbourne-based firm, RPM aims to scale its wholesale tyre division distribution network in the Victoria metro region.

Founded in 1976, Chapel Corner Tyres generated AU$18.5 million (£9.7 million) in revenue and $900,000 (£471,600) in EBITDA during the 2023 fiscal year. The company is projected to contribute an annual EBITDA of $1.15 million (£592,200) following the acquisition. RPM views a strategic alignment with Chapel Corner Tyres as “an opportunity to expand the customer base and cross-sell a broader range of RPM products.”

A stated key advantage of this acquisition is the potential cost synergies of up to $5.5 million (£2.8 million). RPG could achieve these synergies by consolidating distribution in the Victoria metro region, shared logistics and other functions, as well as access to new customers.

Significant step forward

“This is a great acquisition for RPM that meets our strict criteria for best-in-class service, industry knowledge, and a strong cultural alignment with the RPM Group,” says Clive Finkelstein, chief executive officer of RPM. “Chapel Corner Tyres has a great reputation for customer service honed over nearly half a century, which we can leverage across our national network. We look forward to welcoming the high-calibre team along with their resources and warehousing capability, which will strengthen our wholesale platform initially in Victoria and then nationally. In addition, our aligned strategic ambitions will strengthen our competitive position.”

The company states that the acquisition of Chapel Corner Tyres represents a “significant step forward” for RPM Automotive Group Limited, allowing an expansion of its presence in the wholesale tyre market and further solidifying its position as a “key player in the Australian automotive aftermarket sector.”