06/07/2015 - 14:05

AHG buys Perth Mercedes dealerships for $60m

06/07/2015 - 14:05

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Automotive Holdings Group has bought all three Mercedes-Benz dealerships in Perth from Western Pacific Automotive for a combined $58 million.

AHG buys Perth Mercedes dealerships for $60m
AHG managing director Bronte Howson.

Automotive Holdings Group has bought all three Mercedes-Benz dealerships in Perth from Western Pacific Automotive for a combined $58 million.

The dealerships trade as Diesel Motors in Bentley, Westpoint Star in Osborne Park, and Southpoint Star in Mandurah.

The acquisition also includes an autobody repair business in Bassendean.

Western Pacific principal Ian Goldie said AHG had agreed to retain existing staff, including management teams led by Jason Novatsis, meaning the operating structure would remain largely unchanged.

AHG managing director Bronte Howson said the transaction value included goodwill and assets.

“The growth of the luxury car segment has outpaced many mainstream brands and these three dealerships are extremely well run, high-profile businesses with a level of exclusivity in an important sector of the market in Western Australia,” hesaid.

“The timing is perfect for us, with Mercedes-Benz clearly the market leader in the prestige sector in Australia and entering a new product cycle with an outstanding range of vehicles across the compact, passenger, SUV and limousine categories.”

Last week, Business News reported that new car sales had fallen 7.5 per cent in June to 11,503 sales, with Mercedes-Benz sales dropping 2.4 per cent to 249, bringing the marque’s year-to-date total to 1,138.

The acquisition will also strengthen AHG’s relationship with Daimler, with AHG already operating Daimler Trucks dealerships in Perth, Brisbane, Newcastle and the Gold Coast.

Completion of the transaction is expected in late September.

In April, AHG announced it would build its 100th dealership after being granted a franchise to establish a new Mazda car yard in Brisbane.

Shares in AHG were 1.7 per cent lower to $3.95 a share at 2pm.

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