The sale gives Launceston-based LMG its first presence in Hobart and adds five new-car franchise outlets in the CBD and a major used-car operation in suburban Glenorchy.

LMG managing director Sam Nixon told GoAutoNews Premium that the purchase of DJ – for an undisclosed amount – was a confident decision “based on good brands in a good state”.

He said Tasmania was performing well in vehicle sales and LMG had a long-term view on opportunities and acquisitions.

“The Hobart businesses are on leased properties for another six years,” Mr Nixon said.

“We intend to look at greenfields options for the future, away from the CBD that is becoming too expensive.”

LMG will take over DJ’s Kia, Mitsubishi, Nissan, Renault and Mazda outlets in Hobart plus its used-car business in Glenorchy.

It adds to LMG’s Launceston-based Mitsubishi, Toyota, Mazda, BMW, Audi, Honda and Jeep dealerships, plus Mazda outlets in Burnie and Devonport.

DJ will retain its BMW, Mini and BMW motorcycle dealerships in Hobart.

Management and staff will be retained and LMG will have former Melbourne dealer principal Martin Wallace as the new head of the Hobart franchises.

It is the second major acquisition for LMG – which is 65 per cent owned by Tony White Group – following its purchase of the Launceston Motor Group in September 2016. The Tony White Group owns the land on which LMG has its dealerships.

DJs was founded in 1962 by David Johns who was succeeded by his son Michael. It is now in its third generation under the executive directorship of grandson James.

Tony White Group has 25 sales and service locations with 40 brands operating under names including Trinity, Blacklocks, LMG and Byrne.

It started in Melbourne in the late 1980s and now has a presence down the east coast of Australia from Cairns to Hobart.

By Neil Dowling