Suncorp considering motor supplier exit: reportSeptember 4 2019 by Andrew Tjaardstra
Suncorp is considering options for its motor parts supplier subsidiary ACM Parts according to Street Talk.
The Brisbane-based firm has hired Deloitte Corporate Finance to oversee a strategic review for the division, sources said, which will consider a number of options including selling the business in its entirety.
ACM Parts specialises in selling recycled, certified and orignal equipment manufacturer parts to Australia’s motor repair market. After the firm was established in 2013 as a joint venture with LKQ Corporation, Suncorp bought LKQ’s stake in 2016.
The business has sites across the Australian Capital Territories, New South Wales, Queensland and Victoria.
“We continually review our business portfolio to maximise value for all our stakeholders,” a Suncorp spokesperson told Street Talk yesterday (September 3).
It has been a year of change at the group with chief executive Michael Cameron leaving the firm in May.
Suncorp made an after tax profit fell 83.5% to A$175 million (US$118.6 million) for the 2018/19 financial year ending June 30.
This included a A$910 million after tax non-cash loss on sale of the firm’s Australian life business to Japan’s TAL Dai-ichi Life.
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