- RPM Automotive Group has purchased Competition Tyres & More (CT&M) tyre store in Hallam, Victoria for $200,000 in cash and $40,000 worth of shares
- CT&M is located on Hallam Road, 34 kilometres southeast from the Melbourne CBD
- The store is expected to earn $2 million in revenue for financial year 2020
RPM Automotive Group has purchased Competition Tyres & More (CT&M) tyre store in Hallam, Victoria for $200,000 cash and $40,000 worth of shares.
CT&M Hallam is located on Hallam Road, 34 kilometres southeast from the Melbourne CBD. The store is in a highly visible and prime retail location.
The purchase is split with $200,000 payable in cash over 12 months and $40,000 worth of RPM shares at 25¢ each.
CT&M Hallam is a tyre shop that specialises in car tyres, 4×4 tyres, ute/van tyres and truck tyres.
The store is expected to earn $2 million in revenue for financial year 2020.
Managing Director of RPM Clive Finkelstein is pleased with the purchase.
“The acquisition of CT&M Hallam fits with the Company’s goal of building a group of ‘class-leading’ tyres stores nationally and utilising this platform to cross-sell other Company products and thereby offering customers a ‘one-stop-shop’,” he said.
RPM Automotive is part of the Australian automotive market and it comprises of a number of businesses, such as the retailing of tyres, mechanical repairs, motorsport apparel and equipment, manufacturing and roadside assistance.
The tyre store in Hallam has large retail floorspace and workshop to provide a platform to offer products from RPM subsidiaries of Longmarch, Carline, Genie Headers and Formula Off-Road products.
“CT&M Hallam will become the Victorian Head Office of Formula Off-Road, and offers the opportunity to co-brand as a Carline Automotive storefront,” Clive added.
RPM Automotive shares have dropped 8.33 per cent today and are currently selling at 16¢ apiece.