In a move expected to boost the turnover of its Victorian business by two thirds, Eagers Automotive has bought 13 car dealership businesses and three properties, across Melbourne and the Mornington Peninsula, from Sydney based Nick Politis.
The $245 million deal is broken down as:
- $111m for goodwill, to be paid with $25m Eagers shares with the balance in cash;
- $1oom for the real estate – in Brighton and Mulgrave, and
- $34m for other assets.
The portfolio trades BMW, Jaguar, Land Rover, Mercedes-Benz, MG, Mini, Mitsubishi, Nissan, Renault, Skoda, Volkswagen and Skoda, in Essendon, Mornington, Port Melbourne and Toorak.
The Brighton and Mulgrave properties spread a total 5.35 hectares.
“The dealerships currently operate across 13 properties, three of which will be purchased by Eagers…with the balance to be leased on commercial terms from the sellers and third parties,” the buyer said in a statement.
Above the bottom line
The deal will add approximately $1 billion to Eagers’ annual turnover – boosting its Victorian operations to more than $2b (story continues below).
About 700 staff will be retained.
“To be able to acquire such a high quality large scale business, representing c$1b in annual sales or more than 10pc of the total turnover of Eagers Automotive, is a compelling and highly valuable opportunity for the company,” chief executive officer, Keith Thornton, said.
“It will increase our presence in Melbourne, a region we have previously identified as having significant runway for growth,” he added.
“The 12 OEM brand partners included in the transaction represent a high quality portfolio including material prestige market weighting,” according to the executive.
“Finally, the inclusion of three strategic properties…will provide the footprint foundation to continue to progress against key components in our Next100 strategy”.
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