West Perth-based Automotive Holdings Group Ltd has made two acquisitions following its 25.3 per cent increase in first half net profit yesterday.
West Perth-based Automotive Holdings Group Ltd has made two acquisitions following its 25.3 per cent increase in first half net profit yesterday.
The car dealership group said it had paid $15.1 million for the remaining 39.7 per cent stake in the Perth Auto Alliance from Ford.
AHG also revealed it had bought Sydney Holden dealership, Lansvale Holden.
The PAA comprises three Ford dealerships in the Perth metropolitan area, where AHG also operates a further two Ford dealerships.
AHG said the acquisition is the final part of a wider transaction with Ford under which it had the option to acquire 100% of the PAA.
The full text of an AHG announcement is pasted below:
Automotive Holdings Group Limited (ASX: AHE) is pleased to announce the following developments in the company's Automotive Retailing Division.
AHG COMPLETES ACQUISITION OF PAA
AHG has today completed the planned acquisition of the remaining 39.7% of the Perth Auto Alliance(PAA) from Ford.
The PAA comprises 3 Ford dealerships in the Perth metropolitan area, where AHG also operates a further two Ford dealerships. The acquisition is the final part of a wider transaction with Ford under which AHG had the option to acquire 100% of the PAA.
The purchase consideration was $15.1 million. Completion of the acquisition will eliminate the majority
of the outside equity interest in the Group's financial statements.
AHG CEO Bronte Howson said he is delighted that the PAA acquisition has been finalised. "We expect
the PAA to make a strong contribution to the automotive division going forward."
AHG ACQUIRES SYDNEY HOLDEN DEALERSHIP
AHG today announced it had acquired the Lansvale Holden dealership in the western suburbs of Sydney.
The stand-alone dealership is situated on Hume Highway, adjoining AHG's existing automotive retailing
operations in nearby Liverpool.
AHG CEO Bronte Howson said the acquisition was consistent with the Company's strategy of acquiring
businesses that were synergistic to AHG's existing operations and were earnings accretive.
"The Lansvale premises provide us with brand new Holden showroom facilities, some of the best in
Sydney, and a dealership in a key area," said Mr Howson.
Operating the dealership in the adjoining PMA to Liverpool will add strength to the combined Holden
franchises of the Group in Sydney and enhance its ability to deliver exceptional customer service.
"The business has a sound financial profile, will be earnings accretive and provides us with a further boost
in market share in Sydney."
The Lansvale acquisition is in line with AHG's strategy of acquiring dealerships around beachhead
acquisitions, such as the McGrath Lander Group acquired in late 2006.
"The integration of the McGrath Lander group has provided AHG with the critical mass to support acquisitions of single dealerships that fit the AHG model along the eastern seaboard," said Mr Howson.
"We continue to assess a range of automotive opportunities that fit with this growth model and that have the potential to create long term value for shareholders."
Completion is conditional on the satisfaction of standard automotive conditions precedent, including receiving the manufacturer franchise agreement.
