GB Auto are Tembo’s exclusive distribution partner in Australia
Transaction expected to be completed at an enterprise value of 3.6x FY21 EBITDA (unaudited)
VivoPower is pleased to announce that the company has entered into a non-binding letter of intent to acquire 100% ownership of Bensley Auto Investments Pty Ltd, the parent company of GB Auto Group Pty Limited and GB Electric Vehicles Pty Ltd. GB Auto is currently VivoPower’s exclusive distributor of the Tembo e-LV Electric Cruiser and Electric HLX, and Tembo electric vehicle conversion kits, in Australia.
GB Auto is a highly respected leader in the provision of services, products and technology to fleet, heavy vehicle and mobile equipment operators in the mining, construction, transport and agriculture industries across Australia. Operating for over 35 years, with 130 employees and a fleet of 70 vehicles, it has six branches in New South Wales, Australia, including a purpose-built electric vehicle facility that was opened earlier this year. GB Auto’s personnel provide maintenance, repairs and installations across five core areas of electric vehicles, auto electrical, air conditioning, light and heavy mechanical, and fire suppression. Its customer base includes multinational mining and construction companies such as BHP, Newcrest, Glencore, Peabody and Lendlease Samsung Bouygues, as well as original equipment manufacturers including Komatsu Australia, Westrac Caterpillar, Epiroc, Hitachi Construction Machinery and Liebherr Australia.
For its fiscal year ended June 30, 2021, GB Auto generated USD$22.3 million in revenue (unaudited), Adjusted EBITDA of USD$2.1 million and Net Income of USD$0.4 million (unaudited). The purchase consideration will be USD$7.6 million on a cash free debt free basis, with 75% to be paid in cash (expected to be funded from existing and new asset financing facilities) and 25% to paid in VivoPower ordinary shares upon closing. This represents an Adjusted EBITDA multiple of 3.6x.
VivoPower is finalising due diligence and is in the process of completing definitive documents with the shareholders of GB Auto, as well as negotiating acquisition financing facilities. The company anticipates entering into a definitive agreement with the shareholders of GB Auto and plans to disclose the terms of such definitive agreement when and if executed. The company is working to close the transaction on, or before, 28 February 2022.
Kevin Chin, Executive Chairman and CEO of VivoPower commented: “We are looking forward to welcoming the entire GB Auto team to VivoPower having worked closely together over the past 12 months on our mission to electrify vehicle fleets in mining and other industries across Australia. GB Auto is a natural fit for VivoPower and we expect the acquisition to be both strategically and financially accretive for VivoPower as it deepens verticals within the Tembo business line.”
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