Aussie giant buys Auckland car dealerships for $7.5m
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ASX-listed Automotive Holdings Group, Australia's biggest auto retailer, has bought two dealerships in the Auckland suburb of Manukau for $7.5 million, expanding its footprint to nine franchises in the country's biggest city.
Perth-based AHG has agreed to acquire co-located Hyundai and Mitsubishi dealerships near its existing Holden and Nissan sites in Manukau, and will subsume the operations into its existing New Zealand business, the company said.
The Australian firm will pay $7.5m for goodwill plus stock and assets, with the deal expected to settle late next month.
"This acquisition adds two important volume brands to our New Zealand portfolio and aligns with our automotive growth strategy to acquire and aggregate dealerships in and around existing AHG dealerships," said managing director John McConnell.
AHG's New Zealand holding company LWC reported a profit of $6.7m in the June 2017 year, on revenue of $472m. That compares to a profit of $6.6m on sales of $438m in 2016.
New Zealand's auto sector has been enjoying a purple patch with record sales of new car purchases as a strong Kiwi dollar cuts the cost of vehicle imports, an expanding population needs private transportation, and a robust tourism sector stoked demand for rental.