SYDNEY, AUSTRALIA: Autosports Group Limited (ASX: ASG) has entered into an agreement through its wholly owned subsidiary, ASG Melbourne Pty Ltd, to acquire the business and assets of Motorline BMW, Motorline MINI, Motorline Bodyshop, Gold Coast BMW and Gold Coast MINI (Motorline Businesses).
The Motorline Businesses are privately owned by Eastcoast Automotive (QLD) Pty Ltd, Eastcoast Asset Services Pty Ltd, Service Master (Aust) Pty Ltd and Motorline Bodyshop Pty Ltd.
The purchase consideration consists of $60 million for goodwill, plant and equipment subject to usual adjustments. The consideration is intended to be funded by a combination of cash reserves and a debt facility.
CEO of Autosports Group, Nick Pagent said: “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. The transaction aligns with our strategy of representing luxury brands in key metropolitan areas.”
Motorline BMW, MINI and Bodyshop are located in the rapidly growing 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.
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.
The Motorline Businesses’ revenue for FY22 was approximately $261m and net profit before tax was approximately $12m.
Completion is scheduled for 31 January 2023 subject to obtaining BMW Group, financier and lessor consents, obtaining a QLD motor dealer licence, the release of encumbrances and finalising the fit-out costs for the facility upgrade. Autosports Group has also completed legal and financial due diligence in relation to the transaction.