The deal represents AHG’s first Audi franchise and comes within a year of the group buying into Mercedes-Benz outlets.
AHG managing director Bronte Howson said: “Audi is part of the prestige brand segment and, along with Mercedes-Benz and BMW, undergoing strong growth in Australia.
“We are actively pursuing acquisition opportunities in this segment as we expect growth to outperform the mainstream automotive market.
“Audi is a target brand and Newcastle is a strong hub for us with a proven management team. This purchase is a very good fit for AHG Automotive.”
AHG paid $8.4 million for goodwill plus stock and assets at valuation. It said completion of the acquisition remained subject to customary conditions.
The dealerships have been owned by Wayne Sanders since 2006. Mr Sanders is overseas and was not able to be contacted by GoAutoNews Premium for comment.
Audi Centre Newcastle and Newcastle Skoda are on separate sites in Parry Street. They are within three kilometres of AHG’s existing Newcastle automotive hub on Hannell St, which comprises Mazda, Subaru, Holden and Kia dealerships, plus United Auctions Newcastle and Newcastle’s Cheapest Cars.
AHG said this hub also operates centralised parts, pre-delivery and storage. The purchase is seen as offering an immediate opportunity for efficiency gains by integrating the new businesses into all AHG back-end administration functions.
By Neil Dowling