API Locksmiths has been sold to building fixtures and fittings group GWA for $13.1 million.
API Locksmiths is a provider of locksmith services, safes, locks and alarms through its national network, and has revenues of about $25 million a year.
However, the business has been struggling with heavy levels of debt.
GWA entered into an agreement yesterday to acquire API Locksmiths from its parent company Q Technology.
The transaction, funded from existing reserves, is expected to be completed by the beginning of October.
Adrian McKenzie, company secretary for Q Technology group, told SmartCompany the deal provided more “financial strength” for API Locksmiths.
“It allows us to extinguish some debt off our balance sheet,” he says.
McKenzie says Q Technology announced in early March that it was looking to realise value in its company and then entered into a scheme of arrangement with GPA which was terminated in early July.
But GPA indicated it was still interested in API Locksmiths and so the sale went ahead.
McKenzie was unable to say how much debt API Locksmiths is carrying and says he is still waiting on figures from lenders to clarify the business’ position.
McKenzie says the locksmith sector is “reasonably strong” but API Locksmiths has struggled because of the amount of debt it is servicing.
“It has been a difficult time; we have had financial issues with our balance sheet. We have been strapped for funds so this gives us more money to expand and grow the business,” he says.