Peter Warren Automotive Holdings (ASX: PWR) is making good on the acquisition strategy outlined in the prospectus for its April 2021 listing, reaching a deal to acquire Melbourne-based family dealership Penfold Motor Group for $104 million.
The acquisition is set to give Peter Warren immediate scale in Victoria thanks to Penfold's 10 sites in south and east Melbourne, comprising an $88 million cash payment and $16 million worth of new PWR scrip for the vendors.
To pay for the acquisition the company has entered into a new $96 million debt facility, secured against its Warwick Farm property in NSW - one of two included in the initial public offering (IPO) which also included a property in the Gold Coast suburb of Southport.
It is an expansion that adds to ongoing momentum for Peter Warren, having acquired Tweed Mazda in northern NSW, Collins Honda - Rockdale in Greater Sydney, Northern Rivers Honda in Lismore, and Patriot Campers in Arundel, Gold Coast since June.
"This is an important step in delivering on our growth strategy and expands our footprint across the Eastern Seaboard, giving us immediate scale in the Victorian market," says Peter Warren chief executive officer Mark Weaver.
"Bringing Penfold Motor Group into the Group also provides an enviable platform for further growth in Victoria, as we roll out our proven auto-mall concept that has been very successful in Sydney and Queensland for generations.
"The Penfold Motor Group is a very well-regarded business with a rich history of operating in the region, and the acquisition will be accretive for our shareholders. We are delighted to welcome the management team into our Group and expand our operating footprint in the region over time."
Established in in 1964, the Penfold Motor Group currently employs approximately 330 staff and generated revenue of $354 million in FY21. This compared to Peter Warren's revenue of $1.6 billion for the same period, which was an increase of 18 per cent.
The acquirer highlights Penfold's brands Audi, Mazda, Volkswagen, Hyundai and Suzuki align well with its own portfolio.
The current owners and operators of the business, led by Sam Johnstone and other key management, will continue to operate the business under Peter Warren ownership, and will become shareholders in Peter Warren.
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