Sydney-based listed company Smartgroup has acquired Western Australian fleet management company Fleet West for $9 million in cash and shares.
The purchase price equates to an earnings multiple of 4.1 times Fleet West’s expected underlying profit in 2018.
Osborne Park-based Fleet West was established in 2006 by its director Philip Oliver, who has a background in finance and the motor vehicles industry.
Fleet West specialises in offering fleet-based solutions to the not for profit sector and manages 2,800 vehicles for 180 employer clients.
It recorded revenue of approximately $3.5 million and earnings before interest, tax, depreciation and amortisation of about $1.5 million for FY 2017.
It is expected to generate Ebitda of $2.2 million in CY18.
Fleet West will be the 15th business acquired by Smartgroup since inception in 1999.
Smartgroup owns 12 brands across the employee benefits and workforce space for government, health and corporate sectors.
Its chief executive, Deven Billimoria, said the acquisition, funded by cash reserves and an extension of existing debt facilities, would extend Smartgroup's presence in fleet management.
