AP EAGERS FIRES UP TO ACQUIRE PORSCHE CENTRE ADELAIDE

AP EAGERS FIRES UP TO ACQUIRE PORSCHE CENTRE ADELAIDE
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.

Never miss a story: Sign up to Business News Australia's free news updates

Follow us on Twitter, Facebook, LinkedIn and Instagram

 

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Hearing tech Audeara rises from fledgling startup to $21m ASX listing in six years

Hearing tech Audeara rises from fledgling startup to $21m ASX listing in six years

Six years ago, Audeara (ASX: AUA) was a start-up aiming to make h...

Australia orders 25 million COVID-19 vaccine doses from Moderna

Australia orders 25 million COVID-19 vaccine doses from Moderna

Biotechnology company Moderna (Nasdaq: MRNA) has entered into a n...

The pressure is on for Australia to accept the coronavirus really can spread in the air we breathe

The pressure is on for Australia to accept the coronavirus really can spread in the air we breathe

More than a year into the pandemic, the World Health Organization...

Qantas delays planned resumption of international flights to late December

Qantas delays planned resumption of international flights to late December

With the exception of flights to and from New Zealand, Australian...