AUCKLAND, NZ: Autosports Group Limited (ASX: ASG) has entered into an agreement through its wholly owned NZ subsidiary to acquire 100% of the shares in Auckland City BMW Limited in New Zealand.
The purchase consideration consists of NZD$55 million plus approximately NZD$15 million for the net assets at completion subject to usual adjustments. The consideration will be funded by cash reserves and a debt facility of up to NZD$27 million.
CEO of Autosports Group, Nick Pagent said: “This transaction is another key progression of our growth strategy which will deliver numerous benefits for our Group and our shareholders.
“It provides immediate scale as we enter the NZ luxury auto brands market enhancing the geographic diversity and reach of our business beyond Australia.
“With its market leading share in luxury brands, (BMW, MINI and Rolls-Royce), Auckland City BMW will complement our existing business whilst continuing our growth strategy in the luxury market.
“We are pleased to have BMW Group’s support for the acquisition and welcome the opportunity to continue to represent such excellent brands in New Zealand for the first time.”
Auckland City BMW Managing Director and Dealer Principal, Ian Gibson, who will remain with the company said: “We are delighted to join the Autosports Group of dealerships which now extends across the Tasman. We share a common absolute focus on outstanding service to our customers and we are very excited about the benefits which will flow from joining the group.”
Managing Director of BMW New Zealand, Adam Shaver said: “We welcome Autosports Group to New Zealand and very much look forward to continuing to work together with Auckland City BMW and Autosports Group in the years ahead”.
Auckland City BMW Limited is privately owned and has operated in New Zealand since 1970. The entity comprises three dealerships; Auckland City BMW & Rolls-Royce Motor Cars Auckland, Auckland MINI Garage, and East Auckland BMW & MINI. These dealerships represent approximately 37% of BMW market share, 50% of MINI market share and 100% of Rolls-Royce market share in New Zealand. The company is owned in equal shares by Collins Asset Management Investments Limited and Ian Patrick Gibson, Joanne Ellen Gibson and WPL Trustees (Gibson) Limited as trustees of the Broadway22 Trust.
Auckland City BMW was Dealer of the Year in New Zealand for both MINI (Auckland City) and BMW (East Auckland) this year. Management accounts of the Auckland City BMW business record revenue of approximately NZD$157 million for the year ended December 2021. The Auckland City BMW Limited business operates with a net profit before tax and EBITDA margins in excess of Autosports Group’s FY2021 margins