Page 14 - Australasian Paint & Panel Nov-Dec 2019

News • In Focus
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PAINT&PANEL NOVEMBER / DECEMBER 2019
AMA GROUP LOOKS TO THE FUTURE
SUNCORP ANNOUNCED THE SALE OF CAPITAL S.M.A.R.T AND ACM PARTS TO AMA GROUP ON 1 OCTOBER. SAM STREET TALKED TO AMA’S CEO ANDY HOPKINS ABOUT
HOW THE BUSINESS IS PLANNING TO MOVE FORWARD.
HE ACQUISITION OF CAPI-
tal S.M.A.R.T by AMA Group continues the reshaping of the Australian collision repair landscape. Andy Hopkins, one of the biggest industry disruptors this coun- try has seen, has been significantly influ- encing the market since he entered it from
the UK back in 2006.
It’s by far and away the group’s largest
purchase to date and would surely present some challenges? “Of course there are cultural differences but then we aren’t go- ing to merge the companies, Capital S.M.A.R.T will be run independently,” Hopkins said.
There has been speculation in the mar- ket that Capital S.M.A.R.T could potential- ly offer its services to other insurers. “Cap- ital S.M.A.R.T will always be exclusive to Suncorp. The fact that Suncorp chose to keep 10% of the business is an accolade to the way Dave Marino (Capital S.M.A.R.T
CEO) and his team have run it, they have done a fantastic job,” he said.
Hopkins has big plans for Capital S.M.A.R.T, to grow it as an international brand.
“I think it can be a leading global brand, the best collision repair business on a global stage.” AMA’s investor presentation on the deal referenced ‘significant value creation from the combination with approximately $17m of annual cost saving opportunities to be re- alised through AMA’s market leading pro- curement capabilities’. While Capital S.M.A.R.T has sourced its equipment and materials from Australian suppliers, AMA Group’s procurement net is cast much wid- er. Hopkins explained that the savings would come not from changing suppliers, but negotiating better terms and having a
robust discount structure.
On the acquisition of ACM Parts I won-
dered if there was a strategy to become self- sufficient in parts? “The majority of parts we use are sourced from OEMs,
T