SYDNEY, AUSTRALIA: Eagers Automotive Limited (Eagers), an Australian car retailer, has agreed to buy a portfolio of dealerships and properties from a group of companies associated with its director Nick Politis for $245m. The deal will add 12 leading car brands and boost Eagers’ annual turnover in Melbourne by $1bn.

The purchase price includes $111m for goodwill, $100m for three properties in Brighton and Mulgrave, and $34m for net assets. Eagers will pay $25m in shares and the rest in cash to the sellers, who are controlled by Mr Politis.

The acquisition will give Eagers access to a high-quality, well-balanced portfolio of car brands, including BMW, Mercedes-Benz, Volkswagen, and Volvo. The dealerships operate across 13 properties, three of which will be owned by Eagers and the rest leased from the sellers and third parties.

The deal will also enhance Eagers’ footprint and capabilities in the European market, where it plans to leverage Prolupin’s B2B network and engineering expertise. Eagers values the environmental benefits of lupins, such as soil health, landscape restoration, and nitrogen fixation.

Eagers CEO Keith Thornton said the acquisition was a compelling and highly valuable opportunity for the company, as it would increase its presence in Melbourne, a region with significant growth potential. He also said the deal would support Eagers’ Next100 strategy, which aims to transform the automotive retail industry.

Mr Politis said the automotive industry was evolving rapidly and that larger groups like Eagers were best placed to navigate the changes and invest with their key partners. He said he would reinvest $25m of the purchase price in Eagers shares and continue to play an active role as a shareholder and board member.

The transaction is subject to customary conditions, including due diligence, finance approval, OEM consent, landlord consents, and shareholder approval. Eagers shareholders will be asked to approve the deal at a general meeting in early 2024. Further details on the transaction will be available for shareholders before the meeting.

Wide Open Agriculture (WOA) acquires European lupin producer Prolupin GmbH for €2.5m