MELBOURNE: Eagers Automotive Limited announced Thursday it has entered a non-binding agreement to acquire a 50% interest in the Zagame Automotive Group, forming a joint venture with founder Bobby Zagame.

The deal, announced to the ASX Limited Market Announcements Office, would combine one of Australia’s largest automotive retail groups with a premier luxury and performance vehicle retailer. Financial terms were not disclosed.

Zagame, founded in 2000, operates 14 automotive brands across Melbourne and Adelaide, including exclusive dealerships for Aston Martin, Bentley, Ferrari, Lamborghini, McLaren and Rolls-Royce in Victoria. The group also holds exclusive distribution rights for Pagani Automobili and Singer Vehicle Design in Australia and New Zealand.

For the 12 months ending June 2026, Zagame reported approximately $600 million in annual revenue, about 2,000 new vehicle sales and roughly 1,800 used and wholesale vehicle sales.

Eagers CEO Keith Thornton said the partnership expands the company’s presence in the premium and ultra-luxury market segments, where it has historically had limited exposure.

“Bobby Zagame is an industry leader in the premium and ultra luxury market segments,” Thornton said. “The opportunity to combine a brand portfolio such as this does not come along often.”

Thornton said discussions began after Eagers’ recent acquisition of two Audi dealerships from Zagame.

Zagame said the deal represents a partnership rather than an exit and that he will continue to lead the business.

“In Eagers we have found a partner who shares our ambition for growth and values what we have built,” Zagame said.

Eagers said the investment is expected to be immediately earnings accretive to shareholders. The company cited the luxury segment’s lower levels of disruption from industry transition and new market entrants as a strategic factor.

The transaction is subject to customary conditions, including OEM consent, finance approval, regulatory approval and landlord consents. Completion is targeted for the end of November 2026.