Canberra acquisition will expand Eagers national dealership footprint

Eagers Automotive wants to expand its national footprint by acquiring the Canberra dealership assets of Janrule Pty Ltd from it’s major shareholder, WFM Motors Pty Ltd, for $205 million. 

The parties signed a non-binding agreement as the deal is subject to OEM and landlord consent as well as shareholder approval because WFM executive chairman Nick Politis, also sits on the board of Eagers Automotive.  

Brands represented by Janrule Automotive Group include (Canberra)Toyota, Ford, Volkswagen, Jeep, Lexus, Subaru, Mitsubishi, Volvo and GMSV situated in Belconnen, Fyshwick, Phillip and Gungahlin. 

The dealerships operate across 10 owned properties and three commercially leased sites. 

According to Eagers Automotive, Janrule Automotive Group has an annual turnover of $450 million and the 400 employees will remain with the business ensuring a smooth transition for customers, staff and OEM partners. 

Eagers Automotive chief executive Keith Thornton says the ACT is a key strategic region and has long been identified by Eagers Automotive as an opportunity to grow its national footprint. 

“The acquisition of this group marks an entry point into this region for Eagers Automotive which offers immediate scale and scope for future growth. The portfolio is high performing, representing leading manufacturers, and is situated in prime operating locations around Canberra,” Thornton says. 

“Our acquisition of the associated properties is consistent with the ongoing execution of our Next100 strategy and will provide the platform to expand our parallel businesses into the ACT, including easyauto123, our national fixed price pre-owned business,” he says. 

The transaction is subject to customary conditions precedent including finalisation of due diligence, transaction documentation, finance approval, and OEM and landlord consents. 

Eagers Automotive shareholders will be asked to approve the transaction at an Extraordinary General Meeting which is anticipated to be held in June 2022. 

Further information on the transaction, including an Independent Expert’s Report and property details, will be available for shareholders to consider before the meeting.