National Tyre & Wheel Limited (ASX:NTD) agreed to acquire Black Rubber from Cyrax Holdings Pty Ltd and Eastfield Investments Pty Ltd for AUD 26.3 million on November 1, 2021. The purchase price for the acquisition is a combination of cash and scrip. Consideration includes a cash payment of AUD 19.9 million which will be made at completion, the issue of 1,071,430 fully paid ordinary shares in National Tyre & Wheel, an earn out payment up to AUD 2.6 million based on the Black Rubber's EBITDA result in FY22 and a further earn out payment up to AUD 2.6 million based on Black Rubber's EBITDA result in the year ending June 30, 2023 with the ability to earn a “catch-up” if the EBITDA target for FY22 is not met in full. The cash component of the completion payment was funded from NTAW's existing cash reserves and debt facilities. Black Rubber for the period June 30, 2021,reported EBITDA of AUD 6.4 million. The shares to be issued is subject to National Tyre & Wheel's shareholders approval. National Tyre & Wheel and the Vendors will enter into a Management Agreement in relation to the operation of Black Rubber during the period commencing on the completion date and ending on June 30, 2023. John Zelesco will remain as Chief Executive Officer and a Director of Black Rubber. Jim Raffa will remain involved as a consultant. The transaction has been approved by National Tyre & Wheel's Board of Directors. The transaction is expected to close on November 2, 2021.

National Tyre & Wheel Limited (ASX:NTD) completed the acquisition of Black Rubber from Cyrax Holdings Pty Ltd and Eastfield Investments Pty Ltd on November 2, 2021.