POPULAR Queensland Holden dealer Mark Crampton has sold his portfolio of dealerships in Toowoomba, Hervey Bay and Maryborough to AP Eagers, Australia’s second largest dealer group, for an estimated $30 million in shares and cash.

The group includes West Star Motors and Toowoomba Holden representing the Mercedes-Benz, Hyundai, Peugeot, Citroen, Performax, HSV and Holden brands along with Port City Autos representing the Holden, Subaru, Chrysler Jeep Dodge, and Isuzu Trucks brands in the Maryborough/Hervey Bay area of Queensland.

Mr Crampton, who has been in the car business for more than 30 years, has built up the prized franchise portfolio around the core Toowoomba Holden & HSV dealership business which he bought from AP Eagers in 1993 after seven years as a senior executive of the Zupps motor group.

The transaction is being funded with the issue of one million AP Eagers shares plus cash from available funds and existing debt facilities. Eagers shares are presently trading at around $12 each. The purchase price includes goodwill, estimated net assets and transaction costs but does not include cost of inventory.

Mr Crampton will retain the group’s property holdings which he built up over the past 15 years in a long-term strategy to expand his dealer footprint and upgrade facilities. He recently completed new facilities for Mercedes-Benz, Hyundai, Peugeot, Citroen and a used car operation which now takes up an entire city block and completely redeveloped Toowoomba Holden. In Hervey Bay he has just built a new Jeep dealership and expanded his used car operations.

The group employs a total of 170 staff with a turnover of about $130 million from 3000 vehicle sales a year – 2000 new and 1000 used. Eagers says that it expects earnings before tax of at least $6 million a year.

In a statement to the Australian Stock Exchange, Eagers said that Mr Crampton “has developed an extremely wellmanaged dealership operation achieving above-benchmark returns”. Eagers said that Mr Crampton was “one of the top-performing regional dealers” for a number of the franchises he represents.

Eagers said that the business “will continue to thrive under its decentralised management structure”. While Mr Crampton will be stepping back from the business, his son Ross will continue and other dealer principals, senior management and staff of the Crampton group will continue in their roles.

Mark Crampton has been part of the automotive industry for over 25 years and has been actively involved in a number of committees in roles including chairman of the Queensland Provincial Holden Dealer Group, member of Holden’s Forward Product and National Marketing Committees and chairman of the Australian Holden Dealer Council.

Toowoomba Holden & HSV has received numerous awards including the Holden Grand Masters from 1994 to 1998 and 10 times from 2001 to 2014. Toowoomba Holden & HSV was named the National #1 Selling Dealer of New Cars in November 2013.

AP Eagers told the ASX: “This acquisition will enhance AP Eagers’ strong presence in the south-west Queensland region, which was established with the acquisition of the Black Toyota group in 2014. It also provides an opportunity for further expansion in the growing Hervey Bay region.”

AP Eagers group operations manager Keith Thornton said the Black and Crampton purchases “were not a deliberate move into this part of Queensland”.

“We bought the Black’s group because it was a good business and we had an existing DP within our business from the area who is highly regarded. We appointed him to go out and effectively replace Craig Black. So it made sense. It was a great business,” he said.

“And while country Queensland has been a bit tight with toughening trading conditions with the drought and resources coming off, we are amazed at how strong that business is and how resilient that business has been. It just shows how good businesses out in the west are always going to be able to trade even in tough times.

“Blacks is very heavy with Toyota and was predominantly Toyota in that area. With Toyota’s market share it makes the businesses almost bulletproof because Toyota has a huge following in the country and a huge back end as well.

“So the Blacks business was a unique purchase in its own right. It was not a strategic move to be in the country but then once we had Black, and once we saw how it was trading, when the Crampton’s Group popped up there was some logic to it. But it is not a strategic move into that part of Queensland.

“So basically we are not deliberately trying to target certain areas, we are basically taking the opportunities when they arise and when they make good sense,” Mr Thornton said.

By John Mellor