Car dealer network Automotive Holdings Group is increasing its presence in Victoria, snapping up two Toyota dealerships in Melbourne’s northern suburbs for $20 million.
AHG announced today it had reached an agreement to buy Gary McMillian Toyota in Melbourne’ Preston and South Morang Toyota, subject to final asset valuation.
Collectively, the dealerships’ annual revenue is around $100 million.
The acquisitions follow AHG’s recent purchase of Coffee Ford and the Bayside and Peninsula Groups on the Mornington Peninsula.
Managing director Bronte Howson said the Toyota acquisitions were highly strategic and were expected to immediately contribute to the group’s earnings.
“These two high-profile Toyota dealerships complement AHG’s existing Victorian Toyota dealership at Ferntree Gully and offer opportunities to drive significant synergies and efficiencies through centralised dealership operations such as storage, pre-delivery and marketing,” Mr Howson said.
The agreement will also see Gary McMillian construct a new purpose-built dealership in Melbourne’s South Morang growth corridor to relocate the existing car-yard.
AHG now holds 16 car dealership locations and 29 franchises in Victoria.
Development is also under way on a car retailing hub in South Melbourne, for the group’s Hyundai, and Holden/HSV franchises.
“The group’s Victorian operation has an excellent spread of high value brands, representing eight of the top 12 selling manufacturers in Victoria,” Mr Howson said.
At close of trade today, AHG shares were up 0.49 per cent, trading at $4.09.