AHG pays $24m for Mazda dealership

Car retailer Automotive Holdings Group has increased its east coast franchise portfolio with the purchase of a Mazda dealership in Melbourne.

Perth-based AHG will pay $24.4 million for the City Mazda dealership in South Melbourne, plus stock and assets.

The dealership is near AHG’s existing Holden, HSV and Hyundai dealerships in the Victorian capital.

Managing director Bronte Howson said Mazda was a high priority franchise for the company’s Victorian automotive operations, and there were limited opportunities to acquire high-volume metropolitan Mazda franchises.

“This opportunity is located adjacent to an existing AHG automotive hub and we expect to drive both revenue and cost synergies across the two locations,” Mr Howson said.

“The transaction is firmly in line with our ongoing automotive aggression strategy and an excellent opportunity to secure a Mazda franchise in Victoria that can be integrated into an existing AHG retail hub.”

AHG also owns Mazda franchises in Perth, Brisbane, Newcastle, Sydney and Auckland.

Shares in AHG were 0.5 per cent lower to $3.88 each at the close of trade.