24/05/2017 - 14:38

AHG takes stake in auction business

24/05/2017 - 14:38

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Logistics and car retailer Automotive Holdings Group has bought a major stake in an east coast-based vehicle auction business for an undisclosed sum.

AHG takes stake in auction business
The Carlins team buys and sells about 7,500 vehicles annually through its network of wholesale buyers and contracted relationships with dealers.

Logistics and car retailer Automotive Holdings Group has bought a major stake in an east coast-based vehicle auction business for an undisclosed sum.

Perth-based AHG said the acquisition of a majority stake in Carlins Auction Group would complement its existing easyauto123 business, although the two would remain operationally independent.

The acquisition provides AHG with the option to wholly acquire Carlins.

AHG managing director John McConnell said the joint venture would become the preferred wholesale platform for AHG Automotive.

“We will effectively centralise AHG’s internal wholesale operations,” he said.

“The transaction gives AHG access to a platform and management team that are well regarded in the industry.

“This is a significant strategic move for AHG that will allow us to access a strong remarketing platform with multiple pathways to expand the business.”

The Carlins team buys and sells about 7,500 vehicles a year through its network of wholesale buyers and via contracted relationships with dealers.

It also handles about 5,000 consignment vehicles a year.

Mr McConnell said less than 10 per cent of the 12,500 vehicles were sold to retail customers.

AHG shares were 3.2 per cent lower to $3.37 each at the close.

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