Page 15 - Australasian Paint & Panel Nov-Dec 2019

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so no. What I like about ACM is the fact thatit’srecyclingcarsandcarpartswhich is much better for the environment than chucking them away.
“But really it’s all about people and I’m surrounding myself with a top drawer team. Campbell Jones (ACM CEO) is a nat- ural fit for AMA,” he said.
Hopkins explained that his strategy has always been about people. This year he has appointed Steve Bubulj, former IAG head of supply chain who has also worked for other insurers as CEO of the Panel Division. After purchasing a num- ber of heavy vehicle repairers including Wales Truck Repairs, he appointed Dar- ren Wales as head of heavy vehicle re- pair. Now ACM,’s Jones will head up the automotive components and accessories divisions (ACAD)which includes the
consumables, bull bar and Ute body manufacturing businesses and now ACM Parts.
Panel, ACAD and Capital S.M.A.R.T will run as three separate divisions with Bubulj, Jones and Marino in charge re- spectively. “It’s all about people, culture, ethics and team for me,” he said.
With many of the AMA Group facilities specialising in fast ‘factory style’ repairs I asked Hopkins what that the strategy is for dealing with ADAS and the recalibra- tion and diagnostics that repairing those systems involves.
“Well nobody knows the answer to that right now,” he said. “We have teamed up with I-CAR to look into this. We’re not really seeing that many cars that need recalibrating at the moment – maybe1percentofthevolume.However
it will be a hockey stick change and will happen really fast. With Holden and Ford manufacturing here those cars used 10 year-old vehicle technology which is both good and bad. Now I think the Australian market will be the fastest changing in a first world country. The cost of repair will inevitably go up, there is going to be a need to upskill and there will be costs associated with equipment.
“We see it as an opportunity. We will invest and train our people,” he said.
Looking forward Hopkins still sees mas- sive growth potential: “It’s a $6 billion mar- ket – there’s room for everyone. There’s loads of opportunities for growth and not justfromapanelbeatingperspective.”
Hopkins started out in the collision repair business 30 years ago and says that consoli- dation is market driven not AMA driven. “The increasing cost of entry into starting a repair business is a barrier, as is the increas- ing complexity of vehicle technology.
“We go where the insurers want us to. We couldn’t have grown so fast without the support of the insurers.”
On a final note, remarking on the 15 year guaranteed contract with Suncorp with two five year options, which Hopkins says is worth $11 billion: “The fact that Suncorp has realised that they need a ve- hicle repair network for 25 years should give everyone confidence in the future
of the industry.”
FROM LEFT: Andy Hopkins, Campbell Jones, Steve Bubulj, Dave Marino.
SUNCORP SUMMARY OF SALE TO AMA GROUP
• Sale of Capital S.M.A.R.T to AMA valuing 100% of the business at $420m
• Suncorp to retain a 10% stake in Capital S.M.A.R.T and a subsidiary Board seat
• After-tax profit on sale expected to be in the range of $275-295m
• Sale of ACM Parts to AMA for cash consideration of $20m, broadly in line with book value
• 15-year strategic partnership (with two five-year options by Suncorp to extend) with Capital
• S.M.A.R.T, preserving Suncorp's competitive advantage in motor vehicle claims is maintained
• High service levels preserved through the ongoing agreement, creating a positive outcome for customers
• Sale of Capital S.M.A.R.T is unconditional with the Transaction targeted to complete by 31 October 2019
• Capital S.M.A.R.T transaction value represents a FY19 EBITDA multiple of 20x
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