Dealerships, New Zealand, News , ,

AUSTRALIA’S third-biggest listed automotive company Autosports Group Ltd, has diversified out of Australia with the $A63.6 million purchase of a three-dealership business in New Zealand.

It has bought Auckland City BMW Ltd, a private business headed by Ian Gibson as managing director and dealer principal. The business comprises Auckland City BMW and Rolls-Royce Motor Cars Auckland; Auckland Mini Garage; and East Auckland BMW and Mini.

The three businesses represent about 37 per cent of BMW’s market share in NZ, about 50 per cent of Mini, and 100 per cent of Rolls-Royce market shares.

Autosports CEO Nick Pagent said the acquisition was part of its growth strategy.

“It provides immediate scale as we enter the NZ luxury auto brands market enhancing the geographic diversity and reach of our business beyond Australia,” he said.

“With its market-leading share in luxury brands – BMW, Mini and Rolls-Royce – Auckland City BMW will complement our existing business while continuing our growth strategy in the luxury market.”

Mr Pagent said he was 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.”

In Australia, Autosports represents Rolls-Royce with its Sydney dealership. It has five BMW and three Mini dealerships – Canterbury, NSW (BMW & Mini); Bundoora, Vic (BMW); Doncaster, Vic (BMW & Mini); Melbourne Kingsway (BMW & Mini); and Melbourne Southbank, Vic (BMW).

The consideration was $NZ55 million ($A50m) plus about $NZ15 million ($A13.6m) for net assets. Mr Pagent said it would be funded by cash reserves and a debt facility of up to $NZ27 million ($A24.6m).

He said the acquisition would be completed by August 1 and would be earnings per share accretive in the first (current) full financial year.

The vendor, Mr Gibson, will remain with the company. He said in a statement that his company and Autosports shared “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.”

Auckland City BMW

Meanwhile, Autosports’ Aston Martin Sydney dealership has won for Australia for the first time the Aston Martin Lagonda Ltd Dealer of the Year 2021 for the Asia Pacific Region.

The APAC Dealer of the Year Award is based on exceptional dealership commitment, initiative and performance in the region and is judged from 23 retail partners.

The award is judged by Aston Martin Lagonda on four main metrics – business, sales, marketing and aftersales. 

It is the first time that an Australian dealer has won the award, with Aston Martin Sydney adding the achievement to its Australasian Dealer of the Year accolade in 2017.

By Neil Dowling

AdTorque Edge