AUTOSPORTS Group now has presence in six major Australian metropolitan markets after its $50 million purchase this week of South Australian prestige car retailer Solitaire Automotive from shareholder David Smoker.

The purchase, which is the first for Autosports in the South Australian market, gives the dealer group 15 dealerships across 13 Adelaide sites with 10 brands – including the exclusivity of eight luxury brands. The purchase is expected to boost annual revenue by $300 million.

Included in the deal are the exclusive South Australian retail rights for Aston Martin, Jaguar Land Rover, Cupra, Audi, Ducati, Polestar, Volvo Cars, and Zeekr. 

The two non-exclusive brands are Maserati and Volkswagen. Solitaire previously held Alfa Romeo, Fiat and Abarth franchises but ceased these in November last year.

The exclusive retail positioning creates significant barriers to entry, as eight of 10 brands cannot be sold by competitors in South Australia.

Solitaire is a family-owned business that has operated for more than 50 years. It generates about $300 million in annual revenue.

Autosports CEO Nick Pagent said: “The Solitaire Group is a perfect fit for Autosports Group’s growth strategy.

Autosports CEO Nick Pagent

“The Solitaire Group has meaningful scale, good growth prospects and a unique position as the sole retailer in South Australia for most of its brand portfolio.”

“We are delighted to welcome David Smoker as a shareholder, and would like to thank the Smoker and Holst families for their goodwill through the transaction.

David Smoker

“Their contribution to the South Australian luxury automotive market has been without peer. Our thanks also goes to our OEM partners for their continued support.”

He said the purchase would be immediately accretive to Autosports’ earnings per share.

In a statement, he said that the mixed cash-scrip structure preserves $25 million in capital “whilst aligning vendor David Smoker as a shareholder, supporting continuity during integration”.The purchase was $50 million for goodwill plus about $1 million for net tangible assets, plant and equipment. The $50 million of goodwill will comprise $25 million in cash and the remaining $25 million in the form of Autosports shares at an issue price of $3.46 a share.

The cash portion of the purchase is to be funded by cash and existing debt facilities.

Autosports said the deal will have to be cleared by the ACCC and OEMs, with a target completion date of April this year.