Perth-based car dealer network Automotive Holdings Group has taken its franchise count to 150 with the acquisition of a New Zealand Holden dealership and approval to create a new Nissan dealer at the same site.
AHG said today it would pay NZ$6 million for the Davie Motors Holden dealership, which sells cars out of a yard in Manukau in Auckland, as well as operating a service and parts operation in the nearby suburb of Botany.
Managing director Bronte Howson welcomed the opportunity to buy two strong franchises in the competitive Auckland car dealer market.
“Holden and Nissan are top-six franchises in New Zealand with a combined market share in excess of 15 per cent, and we anticipate revenues from the new dealerships in the order of $NZ80 million,” Mr Howson said.
The transaction is expected to be complete by September.
It is the latest in a series of high-profile acquisitions by the dealer network, which completed the purchase of Jazon Mazda’s Osborne Park dealership earlier last week.
The Jason Mazda acquisition followed the $20 million purchase of two Toyota dealerships in Melbourne in April.
At 1:20PM, WST, AHG shares were steady at $3.73.