ASX-listed Autosports Group is trekking across the Tasman and entering the New Zealand luxury car market as it acquires Auckland City BMW in a $70 million deal.
The NZ$70m agreement is part of Autosports Group's entry into the NZ market, adding the dealership to its more than 40 across in New South Wales, Queensland and Victoria.
The company told the Australian Stock Exchange (ASX) today the purchase will further enhance Autosports Group's “geographic diversity” and give it immediate entry into the NZ market.
Autosports said the deal between the two luxury car retailers consists of $55m – plus about $15m for the net assets on completion of the agreement.
The purchases will be funded by cash reserves and a debt facility of up to $27m, with the transaction expected to be completed on Aug 1.
Chief executive Nick Pagent said the transaction was another “key progression” in its growth strategy, and would deliver numerous benefits for the group and its shareholders.
“It provides immediate scale as we enter the NZ luxury auto brands market,” he said.
“We're pleased to have BMW Group’s support for the acquisition and welcome the opportunity to continue to represent such excellent brands in NZ for the first time.”
Auckland City BMW’s managing director Ian Gibson will stay with the company.
“We’re delighted to join the Autosports Group of dealerships, which now extends across the Tasman,” Gibson said.
“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.”
There were 883 BMWs sold in NZ from January to June this year.
