Why the GUD (ASX:GUD) share price will be on watch this morning

GUD Holdings Limited (ASX: GUD) shares will be on watch this morning following the company’s update regarding its acquisition of several businesses.

At market close yesterday, the GUD share price finished the day 0.16% lower at $12.78.

What did GUD announce?

In yesterday’s announcement, GUD advised it has entered into an agreement to acquire Australian Clutch Services and its subsidiaries, XCLUTCH USA Inc and ACS NZ Pty Limited. The total value of the takeover is $32 million, subject to customary price adjustments.

GUD noted that ACS alone recorded normalised earnings before interest and tax (EBIT) of $5.7 million in FY20.

It will be interesting to see how the GUD share price performs today after the company advised it…