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Listed automotive retailer Autosports Group (ASX: ASG) is acquiring Melbourne BMW and Ducati dealership Stillwell Motor Group for $55 million, bolstering the group’s footprint in the luxury automotive sector.
Stillwell, which also sells the BMW Motorrad, MINI, Volvo and MG brands in Victoria and has been under Stillwell family ownership for the past 75 years, operates four dealership locations in Melbourne with $10 million of the acquisition comprising net tangible assets and the remaining $45 million being for goodwill.
The Sydney-based Autosports Group, which operates more than 55 retail businesses in Sydney, Melbourne, Brisbane, the Gold Coast and Auckland, is willing to pay cash to acquire all the shares in B S Stillwell Motor Group Pty Ltd.
However, the Stillwell family can elect to receive up to 15 per cent of the purchase consideration in Autosports Group shares at $2.09 per share.
“The Stillwell Motor Group could not be more perfectly aligned to Autosports Group’s luxury brand and major metropolitan market growth strategy,” says Autosports CEO Nick Pagent.
“With the brands of BMW, BMW Motorrad, MINI, Volvo, MG and Ducati covering four Victorian locations and contributing in excess of $345 million in annualised revenue the acquisition is expected to add, on completion, approximately 13 per cent to Autosports Group’s annualised revenues.
“We thank the Stillwell family, BMW Group and Volvo Cars for their goodwill and support through the transaction.”
Stillwell Motor Group has been owned by the Stillwell family for the past 75 years, established in 1949 by racing driver Bib Stillwell who kicked off the dealership with the MG, Morris and Jaguar marques.
“In our 75th year of direct ownership and operation of franchised motor vehicle and motorcycle dealerships, we are gratified to see our multi-award-winning dealerships join forces with Autosports Group, a company which recognises our legacy and is well positioned to drive future growth for the businesses,” say Stillwell directors Marianne and Chris Stillwell in a joint statement.
“We would like to acknowledge our extraordinary staff who have served our customers and our long-term brand partners BMW Group and Volvo Cars with distinction.”
Autosports says the cash component of the deal will be funded by existing cash reserves as well as new and existing debt facilities.
The deal is expected to settle in October 2024 although it remains conditional on Autosports securing consents from the relevant motor vehicle manufacturers.
Autosports Group is expected to release its FY24 earnings results this Thursday, 22 August 2024.
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