RPM Confirms Chapel Corner Tyres earnout payment

RPM Automotive Group has confirmed the contingent earnout consideration related to the acquisition of Chapel Corner Tyres, announced to the market on 3 July 2023. Following the stronger than anticipated performance of Chapel Corner Tyres, the earnout payment is approximately $0.9 million above initial expectations.

The total earnout amount for the final tranche is as follows:

• Total Amount: $2,552,000
• Cash Component: $1,276,000
• Share Component: $1,276,000

“We would like to commend Stephen Nash, on behalf of the Nash Family on a remarkable outcome that has validated the strategic fit of Chapel Corner Tyres within RPM’s operations,” said RPM CEO, Clive Finkelstein. The acquisition has enhanced RPM’s Wholesale Tyre Division by adding scale, warehousing capacity and creating significant cross-selling opportunities for our broader product range.

“During the period, Chapel Corner Tyres exceeded our expectations, despite challenging market conditions. Notably, gross profit within the business has improved three per cent, and expenses have been reduced by 25 per cent, leading to a substantial 21 per cent increase in EBITDA. These results, alongside our integration and new (recycling) initiatives, positions Chapel Corner Tyres as an outstanding business unit within the RPM Tyre Division.  

“Stephen Nash now joins Joe De Sensi’s team as a key executive in the Tyre Division, taking on the role of operations manager.

“We appreciate the dedication shown and look forward to continued success.”