EPG BOARD APPROVES AAPG ACQUISITION OF SPINKS GROUP

The acquisition will see the TJM store network significantly increase

The Board of the Eastern Polymer Group (“EPG”), the parent company of Aeroklas Asia Pacific Group (“AAPG”) which is the owner of the TJM Equipped brand, has agreed to acquire 100 percent ownership of the Spinks Group Pty Ltd. 
The Spinks Group is the largest privately held distributor of TJM product in Australia. The acquisition will see the corporately owned TJM store network increase to 12 locations across Australia.
Acquiring the Spinks Group will add five sites to the TJM corporate network. The sites are located in Cairns, Townsville, Mackay, Mt Isa, and Darwin.
AAPG will acquire the Spinks Group for an estimated $5.7M and as a result will further strengthen the TJM brand within its home state of Queensland.
The Spinks Group have been in operation since 1985. It is not only the largest distributor, but one of the most high performing businesses within the TJM distributor network.
Integrating the group into the TJM corporate store network will create greater opportunities for AAPG to enhance its Fleet offer, increase direct engagement with consumers and access a wider network of independent stockists within Queensland and the Northern Territory, bolstering AAPG’s potential for growth.
It is expected that over $2M in synergistic benefits will flow to AAPG as a result of the transaction. The bulk of this will be found in purchasing, product, operating expenditure, and independent stockist related synergies.
Given the successful track record of the Spinks Group, AAPG will retain the organisation’s employees to ensure the ongoing standard of high-quality service offered by the group.
AAPG Chief Executive Officer, Greg Kelly, was excited to announce the acquisition and to see TJM strengthen its place in the brand’s state of origin. 
“Far north Queensland and the Northern Territory are of key strategic importance to our business,” Greg said.
“In Queensland, where it all began for TJM, we enjoy a special affinity with our customers, this acquisition will strengthen our base and offer high quality returns in a market we know extremely well.”
It is expected that the five new locations will be integrated into the existing TJM corporate store network. When asked about labour synergies relating to the integration, Greg made the following remarks. 
“Over the last 38 years, Rod Spinks and the team at the Spinks Group have built a high performing business with a great team of longstanding local people that are well connected within their local communities,” Greg said.
“We understand how critical these strong local connections are to the business and we are here to support these critical links that underpin the success of these five locations.”
He went on to talk more about the alignment the agreement has with the organisation’s key markets.
“What is really exciting is the opportunity that we now have to grow our Fleet business and engage more closely with consumers,” Greg said.
“The Spinks Group has strong relationships with numerous large fleet owners that can be leveraged nationally. In industries like mining, we can now offer more through our investments in assets in key mining states Queensland, Western Australia and the Northern Territory.
“There are also enormous opportunities in being able to offer a stronger value proposition to independent stockist via these new sites. This agreement will see us really open up TJM in the northern part of Australia.”

For more information, visit www.aeroklas.com.au