Automotive Holdings Group has further increased its presence in the Western Australian market, with an agreement to acquire the Jason Mazda dealership in Osborne Park.
AHG managing director Bronte Howson says the acquisition is an exciting addition to the company’s retail presence, and would be immediately earnings accretive.
“We’re delighted to add the Mazda brand to our portfolio of brands in Western Australia where we will now represent 12 of the 13 top selling manufacturers,” says Howson.
Jason Mazda is a high profile dealership in a prominent location within the Osborne Park automotive precinct and has been owned and successfully operated by Paul Lawrence for more than 35 years,” says Howson.
He says AHG plans to redevelop the dealership site to provide a new showroom, double servicing capacity, and increased display space.
“The location also offers the opportunity to leverage a range of synergies and cost-efficiencies, being close to AHG’s existing automotive hub of nine high profile dealerships in Osborne Park.”
The transaction involves a total consideration of $13 million, subject to final asset valuation. It is subject to certain approvals, which are expected to be received, with settlement anticipated next month. The dealership generates approximately $50 million in annual revenue.
AHG already operates four Mazda dealerships; McGrath Mazda at Sutherland and Liverpool in Sydney, and John Andrew Mazda and North Harbour Mazda, both in Auckland, New Zealand.
The acquisition of Jason Mazda follows recent announcements by AGH of its acquisition of two Toyota dealerships in Melbourne’s northern suburbs from the McMillan group, and the settlement of the purchase of the Bayside and Peninsular dealerships on the Mornington Peninsular.
The Bayside, Peninsular and McMillan dealerships presently generate approximately $180 million in annual revenue.
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