According to a story in the Financial Review's Street Talk column Suncorp Group is considering options for ACM Parts.
According to its sources Suncorp has formally hired Deloitte Corporate Finance to oversee a strategic review for the division, which will consider a number of options including selling the business in its entirety.
"We continually review our business portfolio to maximise value for all our stakeholders," a Suncorp spokesperson told Street Talk.
ACM Parts specialises in selling recycled, certified and OEM parts, it was established in 2013 as a joint venture with LKQ Corporation. Suncorp bought LKQ's stake in 2016.
The business, which has sites across Victoria, New South Wales, the ACT and Queensland gives Suncorp a channel through which to sell parts from written off vehicles.
The article went on to say that Suncorp lumps ACM Parts in with a number of small businesses it calls its "innovative ventures". They include Capital S.M.A.R.T Repairs, home repair company HomeRepair and US insurance platform Trov.
'Under previous chief executive Michael Cameron, Suncorp had tried to build an online marketplace that sold a large range of products, not limited just to financial services.
The strategy was seen as a failure, and acting chief executive Steve Johnston disowned it at full year results in August, saying the company would simplify its focus on insurance and banking products. Johnston admitted the marketplace narrative was "confusing".
Suncorp has recent form in shedding non-core parts of the business. Along with the ongoing Capital S.M.A.R.T auction, it parted with insurance brokerage Resilium earlier this year.