The purchase brings ASG’s new-car franchises to 29 and Canterbury becomes the fifth BMW showroom and the group’s sole BMW brand outlet in NSW.
ASG, in an announcement to the Australian Securities Exchange, said its subsidiary, 28 Melbourne Pty Ltd, entered into an agreement with Baldacchino 888 Prestige Autohaus Pty Ltd to buy Canterbury BMW.

The BMW business, owned by Jeffrey Baldacchino as dealer principal, had a revenue of $85 million in the 2017 financial year. It is sited on leased property in Canterbury Road, Canterbury, in Sydney’s inner west.

ASG said the transaction is subject to a number of conditions prior to completion, including approval of bailment facilities and approval from the landlord to transfer of the leases.

It said that subject to these conditions, it expects the sale to be completed in April.

ASG will pay about $15.6 million plus fixed assets at valuation and will fund the purchase through a combination of cash drawn from reserves and new debt facilities.

ASG CEO Nick Pagent said: “This acquisition provides the opportunity for ASG to further consolidate its representation with the luxury brand of BMW.

“Furthermore, it extends ASG’s BMW representation into the Sydney market to complement its Melbourne BMW businesses in Doncaster, Bundoora, Southbank and Kingsway,” he said.

“This acquisition is a perfect strategic and geographic fit for Autosports Group.

“We are looking forward to deepening our relationship with the BMW Group in the important market of Sydney.

“We thank BMW Group Australia CEO Marc-Heinrich Werner for his collaborative approach to the acquisition.”

Meanwhile, ASG is to make its first property acquisition.

It will buy the property on which its Queensland-based Mercedes-Benz Macgregor dealership is sited in Brisbane’s inner south.

The purchase price is yet to be determined but will be 100 per cent debt funded, ASG said in a statement to the Australian Securities Exchange.

The company said it “would assess other opportunities to acquire the properties on which ASG dealerships sit if and when they arise”.

By Neil Dowling