Eagers Automotive is buying 50 per cent of luxury car retailer Zagame Automotive Group, and this week will enter into a non-binding agreement to form a joint venture between Eagers and Bobby Zagame.

The deal is the second play by Eagers into the automotive importation and distribution business, following its role in the national rollout, through its dealerships, of BYD.

Via this purchase of half of Zagame Automotive Group (ZAG), Eagers has bought into the exclusive distribution of two exotic car brands, Pagani and Singer Design, for Australia and New Zealand.

Rolls Royce Melbourne

It puts Eagers in a position where it can act as both importer/distributor, and retailer, to create a very strong and cooperative relationship between an OEM and the customer.   

Just two weeks ago, at the presentation of Eagers’ FY26 financials, the company said it had “well advanced strategic partnerships” in its future growth path. Now the ZAG joint venture has been exposed as the first of those in the FY27 year.

Eagers has received ACCC approval for the purchase of Audi Centre Melbourne and Audi Richmond from ZAG. The acquisitions were announced earlier this year and are not directly related to this week’s joint venture.

McLaren Melbourne

It has been a busy 12 months for Eagers.

In October 2025, Eagers bought 65 per cent of Canada’s biggest car retailer CanadaOne Auto for $1.043b. It then sold 20 per cent of its used-car outlet group EasyAuto123 and a slice of its Carlins Auction business to Mitsubishi Corporation for $70m.

The cascade of deals then saw CanadaOne founder and majority shareholder Pat Priestner become Eagers’ second-biggest shareholder with about seven per cent of the company. He retains 35 per cent of CanadaOne.

Mitsubishi Corp also took a $50m share placement in Eagers with the money used to partly fund the CanadaOne deal.

Ferrari Melbourne

Eight months later, Eagers announced it would buy a 17.5 per cent stake in Australia’s biggest car subscription service, Karmo, in a move designed to produce synergies in new and used-vehicle transactions.

The non-binding agreement with Karmo aimed to provide a flow of off-subscription vehicles between Karmo and Eagers’ EasyAuto123 used-car division.

It will also operate in the reverse direction in which Eagers will add to more than 100 dealers nationally who are selling new cars to Karmo.

Zagame Showroom

Then last month, Eagers posted a record result for the 2026 financial year with revenue of $8.1b and an underlying profit before tax of $250.4m. 

ZAG now headlines the opening to FY27.

Lamborghini Melbourne

ZAG, founded in 2000 by Bobby Zagame, is a major retailer of sports, luxury, and performance vehicles. 

Its business comprises 14 prestige brands operating from centres in Melbourne and Adelaide.

ZAG is near the centre of the big-ticket automotive sector that Eagers has yet to be involved in, so for Eagers, the joint venture will add a very strong addition to its market coverage.

This is particularly relevant as the prestige and luxury sector is yet to be affected by strong competition from the Chinese brands, thus helping to insulate any impact on the financials of the dealer group.

Bobby Zagame

ZAG is Melbourne’s exclusive dealer for Aston Martin, Bentley, Brabus, Fiat, Ferrari, McLaren, Lamborghini, and Rolls-Royce. It also represents Abarth, Alfa Romeo, Audi, and Cupra in dedicated prime market areas. 

In Adelaide, ZAG is the exclusive dealer for Bentley, Ferrari, and Lamborghini and is an authorised service and repairer for Rolls-Royce and McLaren.

It is also the exclusive distributor for Pagani Automobili and Singer Vehicle Design in Australia and New Zealand, making Eagers its second and third play in distribution.

Zagame Autobody Tullamarine

ZAG’s Zagame Autosports Division and Zagame Autobody businesses also offer bespoke client services in buying, repair, and storage for dedicated track-car brands, and panel repairs for the prestige and luxury brands. Another business opportunity for Eagers.

For the 12 months ended June 2026, ZAG delivered annual revenue of about $600m; delivered about 2000 new cars to clients; and sold about 1800 used and wholesale vehicles.

Eagers – now capitalised at $6.61b – said that the investment with Zagame Automotive Group was “further evidence of the continued evolution and optimisation of Eagers Automotive’s brand portfolio, with the strategic decision to increase exposure in the luxury and super-luxury segments, an area of the market with lower levels of disruption as a result of the current industry transition and new market entrants”.

“The partnership with Bobby Zagame also provides a unique opportunity for Eagers to establish  relationships with some of the most globally recognised marques in the industry,” said Eagrs in a statement.

Zagame Autosports

“The Zagame Automotive Group provides an industry-leading and large-scale operation within these segments, with  exclusive representation across a number of brands within key markets.

“The partnership with Eagers Automotive will create the opportunity for further scale benefits and optimisation, driving long-term value creation opportunities for both businesses.”

Eagers said that the investment was expected to be immediately earnings accretive to Eagers shareholders.

ZAG executive director and founder, Bobby Zagame, said that for him, it was “a partnership, not an exit”.

“I have spent decades building this business alongside our people, our customers and our manufacturer partners, and choosing the right partner mattered enormously to me,” he said in a statement.

“In Eagers we have found a partner who shares our ambition for growth and values what we have built. I’m excited to continue to lead the business with stronger backing behind us.”

Keith Thornton

Eagers CEO Keith Thornton said, “We are delighted to partner with Bobby Zagame and the Zagame Automotive Group”.  

“Bobby Zagame is an industry leader in the premium and ultra luxury market segments, an area where Eagers has historically had limited exposure,” he added. 

“Our recent acquisition of two Audi dealerships from the Zagame Automotive Group led to discussions with Bobby about the opportunity to combine the best of the Zagame Group with the scale benefits of Eagers.

“The opportunity to combine a brand portfolio such as this does not come along often and we are thrilled to be able to partner with Bobby who will continue to lead this business as part of the joint venture. 

“This partnership is a truly unique opportunity which expands Eagers portfolio exposure  through a collaborative joint venture business model, partnering with Bobby and his industry leading team at Zagame Automotive Group as they continue to deliver the highest quality customer service in this attractive market segment “ 

The transaction is subject to customary conditions precedent including OEM consent, finance approval, regulatory approval and landlord consents, with a target completion date at the end of November 2026.