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High-profile 4WD supplier TJM sold to Aeroklas
No changes to distributors as new owner Aeroklas plans to expand TJM product range
24 Feb 2015
By NEIL DOWLING
ONE of Australia’s high-profile four-wheel-drive component specialists, TJM Products, has been sold for $22.2 million to Aeroklas Australia.
Aeroklas, a manufacturer, distributor and marketer of accessories for utilities and SUVs, today announced it had bought TJM Products from its parent CMI Ltd after some months of negotiation.
Aeroklas marketing manager Damian Calello said the two companies would remain separate and that the acquisition would expand his company’s presence in the leisure market.
It is the first acquisition for Aeroklas, a subsidiary of Thai-based public company Eastern Polymer Group, since setting up in Australia in 2011.
Aeroklas currently produces, imports and resells plastic ute canopies, tray liners and accessories from Thailand.
Its products have a strong brand recognition by original equipment manufacturers (OEMs) and Australia’s aftermarket industry.
“It gives us the ability to place a lot more of our products into TJM stores,” Mr Calello said.
“But there will be no rebranding of TJM products. The two companies will continue as usual.”
TJM is a major manufacturer, distributor, reseller and marketer of automotive aftermarket and OEM accessories. These include bullbars, nudge bars, winches, compressors, snorkels, suspension systems, differential locks and other specialist products.
It is also billed as the first Australian company to make and distribute 4WD products and accessories.
TJM has 58 stores in Australia and claims to have the biggest number of branded, independently-run distributors. It also has operations in the US and China for product sourcing and manufacturing.
Furthermore, its Australian operation, based in Geebung, Queensland, carries out research and development and small-scale manufacturing.
CMI Ltd executive chairman Andrew Buckley said the sale of TJM to Aeroklas was triggered by a need to divest itself from non-core operations.
“CMI is involved in electrical products for the mining industry and we wanted to focus on businesses with synergy,” he said. “TJM was an unrelated part of our business.”
CMI’s annual report for 2014 showed TJM had recorded a $3.8 million loss on revenue of $41.4 million. Its electrical division reported an $11.1 million profit on revenue of $50.9 million.
Mr Buckley said he welcomed the purchase by Aeroklas.
“They are in the same business as TJM, have a presence in Australia and understand the market,” he said. “It is a very supportive company.”
He said TJM employees and its distributors would benefit from the expertise and capabilities of Aeroklas.
“CMI has owned TJM for more than 10 years and we are proud that the business leaves us with a strong brand, a suite of great products, a healthy market, a strong team of dedicated TJM employees and distributors and potential future growth.’’Aeroklas director Mrs Sally (Supawadee Vitoorapakorn) said: “We are very excited and at the same time we very much welcome the TJM management to the Aeroklas family, including its staff and all the independently owned businesses and dealers who proudly wear on their sleeves the TJM brand throughout Australia.
“As a family member of EPG and Aeroklas, I would like to give my commitment and support to each and every one of you, as a true partner.
“Together we will grow the business with passion, drive and determination with the goal to be the number one in the automotive accessories industry.”
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