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AUSTRALIA'S oldest listed automotive group AP Eagers has purchased Adelaide's Porsche dealership for $14 million, in a move to grow its presence in South Australia.
This will be the second Porsche dealership to grace the AP Eagers portfolio, alongside its first in Brisbane's Newstead that it has owned for more than 20 years.
The Adelaide Porsche Centre currently employs 24 staff and is expected to generate around $40 million in annual turnover through the sale of more than 300 new and used vehicles year-on-year.
AP Eagers CEO Martin Ward says his company is looking forward to strengthening its ties with the luxury brand.
"AP Eagers has a very successful partnership with Porsche Cars Australia and we are very excited and privileged to be given the opportunity to represent the Porsche brand in the South Australian market," says Ward.
Assuming due diligence, formal transaction documentation and manufacturer approvals are met, the sale is expected to be completed in July.
The acquisition follows the company's announcement on Monday that it would offload two million shares at a bargain of $7.05, totalling around $14 million.
The company also downgraded its profit forecast in May by between 7 and 9 per cent because of an unexpected fall in consumer demand.
Ward said in May that vehicle sales in Queensland, where it receives the bulk of its profits, had fallen almost 6 per cent in the first four calendar months of 2017.
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