Automotive Holdings Group (ASX: AHG) has agreed to acquire two franchised automotive dealerships in the southern Auckland suburb of Manukau.
The co‐located Hyundai and Mitsubishi dealerships are close to AHG’s existing Holden and Nissan dealerships in Manukau and will become part of the Group’s broader New Zealand operations.
AHG managing director John McConnell said the transaction represented a valuable addition to the Company’s presence in Auckland.
“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,” said Mr McConnell.
“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,” he said.
The acquisition involves a total consideration of NZ$7.5‐million for goodwill, plus stock and assets at valuation. It is subject to customary conditions, including manufacturer approvals, and is expected to settle late next month. Subject to completion, AHG will hold nine automotive franchises in Auckland.
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