INDEPENDENT NEWS

Automotive Holdings Group buys two Manukau car dealerships

Published: Mon 8 Jan 2018 08:28 PM
Australia's Automotive Holdings Group buys two Manukau car dealerships for $7.5M
By Paul McBeth
Jan. 8 (BusinessDesk) - ASX-listed Automotive Holdings Group, Australia's biggest auto retailer, has bought two dealerships in the Auckland suburb of Manukau for $7.5 million, expanding its footprint to nine franchises in the country's biggest city.
Perth-based AHG has agreed to acquire co-located Hyundai and Mitsubishi dealerships near its existing Holden and Nissan sites in Manukau, and will subsume the operations into its existing New Zealand business, the company said in a statement. The Australian firm will pay $7.5 million for goodwill plus stock and assets, with the deal expected to settle late next month.
"This acquisition adds two important volume brands to our New Zealand portfolio and aligns with our automotive growth strategy to acquire and aggregate dealerships in and around existing AHG dealerships," managing director John McConnell said. "These are well-run businesses and brands that can be rolled into an existing AHG hub with a number of initiatives that we can put in place to drive both incremental revenue and cost synergies across both dealerships."
AHG's New Zealand holding company LWC reported a profit of $6.7 million in the June 2017 year, on revenue of $472 million. That compares to a profit of $6.6 million on sales of $438 million in 2016.
New Zealand's auto sector has been enjoying a purple patch with record sales of new car purchases as a strong kiwi dollar cuts the cost of vehicle imports, an expanding population needs private transportation, and a robust tourism sector stoked demand for rental.
AHG shares slipped 0.1 percent to A$3.685 on the ASX and have declined 5.5 percent over the past 12 months.
(BusinessDesk)

Next in Business, Science, and Tech

NASA Hand-picks Kiwi Nut Butter Brand Fix & Fogg To Travel To Space In NZ First
By: Fix and Fogg
Sailors To Revolutionise Our Understanding Of Pacific Biodiversity
By: Citizens of the Sea
Making A Splash With Online Safety: Netsafe Launches New Flagship Programme For Kids
By: Netsafe
Flood Resilience PhD Student Widi Auliagisni Named Future Thinker Of The Year 2024
By: NZGBC
European Free Trade Agreement A Game-changer For Canterbury
By: Business Canterbury
Business Canterbury Urges Council To Cut Costs, Not Ambition For City
By: Business Canterbury
View as: DESKTOP | MOBILE © Scoop Media