DVG owner expands to east coast
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Three years after taking a majority stake in Perth company DVG Automotive Group, Japanese outfit IDOM has made its first move into the east coast car market, purchasing Melbourne-based Andrews & Wallis Motor Group.
Andrews & Wallis, which is located in the commercial airport precinct of Essendon Fields, reported revenue of $261 million and net earnings of $12 million in the 2018 financial year.
The group represents seven brands - Honda, Mazda, Toyota, Jeep & Chrysler, Alfa Romeo, Fiat, and Isuzu Ute.
The company was founded in 1991 by John Andrews and former Western Bulldogs captain Steve Wallis.
IDOM Automotive Group chief executive Takayoshi Udagawa said the acquisition provided a good opportunity to expand.
“The Andrew & Wallis Motor Group is an amazing business for IDOM to grow into,” he said.
“It has strong annual sales revenue, with strong internal processes and a committed focus on customer service, which closely aligns with IDOM’s objective of being the number one, customer-focused automotive solutions provider.
“It is also located in a strategic commercial precinct with excellent growth potential.”
The Japanese company purchased a 67 per cent stake in DVG for $120.6 million in 2015, and Mr Udawaga said IDOM was now focused on the national market.
“We have stabilised the DVG business in WA and thanks to our dedicated and committed employees, we are now delivering improved results in what is still challenging market conditions,” he said.
“Now is the right time for IDOM to start executing its expansion strategy into the east coast automotive market.
Mr Wallis said the group was excited to become a part of IDOM.
“IDOM has such a supportive culture. They are happy for us to continue implementing our growth strategy for the AWMG business, while offering us all of their knowledge and innovation that comes from being a global automotive leader,” he said.
“We’re really looking forward to AWMG being a part of IDOM’s plans to be a major automotive solutions provider across Australia.”