Real Estate

AUSTRALIAN listed vehicle retailer Peter Warren Automotive (PWR) has scooped a further four dealerships in its hub of Campbelltown in NSW after a $27 million purchase from car dealer Greg Oakman.

The dealerships are Macarthur Mazda, MG, Nissan and LDV, all in Mill Road in Campbelltown.

PWR said the acquisition reflects its “disciplined consolidation strategy” of adding new brands that will complement existing operations in Western Sydney.

In a statement to the Australian Securities Exchange (ASX), PWR CEO Mark Weaver said the deal adds four top 20 brands to PWR’s well-established footprint in Western Sydney.

He said it would deliver “strong geographical and operational benefits” and said the purchase represented a “high-quality operation with a team culture strongly aligned to ours.”

Mark Weaver

“We are delighted to welcome the team to Peter Warren, providing continuity of service to customers and OEM partners. We extend our thanks to Greg Oakman and wish him well,” he said.
“Looking to the future, these new brands build a platform for additional acquisitions and enable further diversification of our income across all segments of the automotive market.”

The consideration is about $27 million, including net assets, that will be funded from cash and debt. PWR said the business was expected to benefit the EPS immediately.

“The businesses generate turnover of $140 million, with approximately 80 employees,” Mr Weaver told the ASX.

“The transaction is subject to OEM approvals and is expected to complete in the coming months.”He said that current operational management will remain in place with the only change being that Mazda requires the brand’s dealer principal to hold a minority shareholding.

It is PWR’s third major dealership purchase since it bought 10 dealerships in November 2021 from Penfolds, marking its first move into Victoria.

In June last year it paid $45 million to add an 80 per cent share in the Toyota dealership at Warwick Farm, and 95 per cent of the Toyota and Volkswagen dealerships at Bathurst. 

These three dealerships in 2021 generated a combined turnover of $180 million with about 110 employees. 

PWR now operates across the eastern seaboard under various names including Peter Warren Automotive, Frizelle Sunshine Automotive, Sydney North Shore Automotive, Mercedes‐Benz North Shore, Macarthur Automotive, Penfold Motor Group, Bathurst Toyota and Volkswagen and Euro Collision Centre.

PWR established Macarthur Automotive – not related to the businesses it recently bought – in 2002 when it bought the Mercedes-Benz Macarthur dealership in Campbelltown.

In 2005, Ford Campbelltown and Ford Camden were also added to the group. Later in 2007, additional brands such as Jeep, Chrysler and Kia were acquired, which established a firm stake in the ground for the company. 

In the following year, Camden Ford moved into a brand new facility in Narellan and began trading as Macarthur Ford Narellan.

Today, Macarthur Automotive has two locations in South West Sydney and represents over 10 of the world’s best car brands including Jaguar, Land Rover, Mercedes-Benz, Chrysler, Jeep, Ford, Honda, Kia, Suzuki and Renault. 

The company also has a dedicated used car dealership in Macarthur Automotive Direct.

By Neil Dowling

AdTorque Edge