Home / Daily / Suncorp may put ACM Parts up for sale
4 September 2019
Suncorp is reportedly considering the future of its ACM automotive parts business as it continues to review its operations and sharpens its insurance and banking focus.
The company has hired Deloitte Corporate Finance to look at options for ACM Parts, including a possible sale, the Australian Financial Review reported today.
A Suncorp spokeswoman told insuranceNEWS.com.au the company does not comment on market speculation, but added: “We continually review our business portfolio to maximise value for all our stakeholders.”
ACM is a national supplier of original, recycled and independently certified parts to the motor repair industry as well as directly to the general public.
Suncorp took full ownership in 2016 after buying the stake of its joint venture partner LKQ Corporation, a global auto parts provider based in Chicago.
The joint venture was formed in 2013, with Suncorp supplying salvage vehicles and helping establish relationships with repair shops as customers.
The investment was part of a strategy to minimise parts costs inflation, to improve turnaround times and to better understanding industry supply issues, according to reports at the time.
Suncorp is also currently considering options for its Capital Smart Repairs business, which could potentially lead to a sale.
Acting CEO Steve Johnston told an earnings briefing last month that Suncorp expected to complete the Smart strategic review in the first half of the current financial year.
The Melbourne-based repairer has a national network of workshops that handle more than 145,000 vehicles annually.
Suncorp has this year divested its Resilium authorised representative network through a management buyout and in February completed the sale of the Australian life insurance business to TAL Dai-ichi.