Autosports Group to acquire string of QLD car dealerships for $60m

Autosports Group to acquire string of QLD car dealerships for $60m

Photo courtesy of Autosports Group

In a move to bolster its footprint on Australia’s east coast, luxury car retailer Autosports Group (ASX: ASG) has today announced its plans to acquire four dealerships and a body shop for $60 million in Queensland.  

If successful, the deal will see the group acquire the business and assets of Motorline BMW, Motorline MINI, Motorline Bodyshop, Gold Coast BMW and Gold Coast MINI, which collectively generated $261 million in revenue for FY22 and a net profit before tax of roughly $12 million.

The potential acquisition comes four months after the company made its foray into New Zealand with the NZD$70 million (AUD$ 66 million) buy-out of Auckland City BMW – an entity comprising three dealerships that sell BMW, MINI and Rolls-Royce cars.

Across the Tasman these dealerships represent approximately 37 per cent of the BMW market share, 50 per cent of the MINI market share and 100 per cent of Rolls-Royce's market share in New Zealand.

“Having only recently expanded our partnership with BMW Group in New Zealand with our acquisition of Auckland City BMW, securing the Motorline and Gold Coast BMW/MINI dealerships scales up our representation of BMW and MINI,” Autosports Group CEO Nick Pagent said.

“The transaction aligns with our strategy of representing luxury brands in key metropolitan areas.”

Founded in 2006, Autosports Group began with the establishment of the Audi Autosports Dealership as a greenfield site in Sydney. Since then, the group’s portfolio has grown to 55-plus retail businesses throughout Sydney, Melbourne, Brisbane, Gold Coast and Auckland.

The company represents a myriad of automotive brands, including Alpina, Aston Martin, Audi, Bentley, BMW, BMW Motorrad, Ducati, Jaguar, Kia, Lamborghini, Land Rover, Maserati, McLaren, Mercedes-Benz, MINI, Rolls-Royce, Subaru, Volkswagen and Volvo.

In addition to operating its dealerships, the group also provides car servicing with roughly 60 locations across three states, as well as financing and insurance solutions.

In FY22, Autosports Group delivered a record net profit before tax of $92.8 million, up 23 per cent year-on-year. Statutory net profit also increased by 29 per cent to $54.6 million.

Two months ago, the group forked out $98 million to Dexus (ASX: DXS) to purchase adjoining dealerships at 586 Wickham Street and 10 Light Street in Fortitude Valley, where it currently operates its central Brisbane Audi, Bentley, Lamborghini and Maserati business.

Three of the new assets Autosports Group is looking to purchase - Motorline BMW, MINI and Bodyshop - are located in Logan City, approximately 23km south of the Brisbane CBD.

“This dealership is undergoing a facility upgrade to bring it in line with the latest BMW corporate identity, similar to Autosports Group’s recent Melbourne BMW Kings Way upgrade,” Autosports Group said to shareholders.

“The Gold Coast BMW dealership represents the BMW brand on the Gold Coast and Northern NSW region.

“The Motorline Bodyshop also provides an additional complementary revenue stream to the core South Brisbane and Gold Coast dealerships.”

Autosports Group intends to fund its latest transaction through a combination of cash and debt facility.

Completion of the deal is scheduled for 31 January, subject to conditions.

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