Politis to receive $25 million in shares from Eagers dealership acquisition

Businessman Nick Politis will receive a further $25 million shareholding in Eagers Automotive as it acquires a portfolio of dealerships in Victoria in which he is a stakeholder.  

Eagers Automotive has agreed to acquire the dealerships and properties across Melbourne and the Mornington region for about $245 million from a group of companies associated with Politis.

The deal is subject to OEM consents, finalisation of due diligence, transaction documentation, finance approval and landlord consents. It is also subject to shareholder approval due to the relationship between Politis (who sits on the Eagers board of directors) and the various selling entities.  

Essendon BMW and Mercedes-Benz Brighton are among the dealerships in the acquisition. 

The Melbourne acquisition includes brands such as Jaguar, Land Rover, MG, Mini, Mitsubishi, Nissan, Renault, Skoda, Volkswagen and Volvo. The remaining dealerships in Mornington, Mulgrave, Port Melbourne and Toorak, complement Eagers’ existing operations in Victoria.

Eagers says about 770 employees will remain with the business, adding significant scale to Victorian operations expected to grow to $2.5 billion in annual turnover, says Eagers.

“To be able to acquire a business representing circa $1.0 billion in annual sales or more than 10% of the total revenue of Eagers Automotive, is a compelling and valuable opportunity for the company,” says Eagers Automotive chief executive Keith Thornton.

 “It will increase our presence in Melbourne, a region we have previously identified as having significant runway for growth, taking our annual turnover in this region alone from $1.5 billion to $2.5 billion.

“The 12 OEM brand partners included in the transaction represent a high-quality portfolio including material prestige market weighting.

“Finally, the inclusion of three strategic properties, representing approximately 53,500 sqm in high-profile sites in Brighton and Mulgrave, will provide the footprint foundation to continue progress against key components of our Next100 strategy,” he says.

Politis says the automotive industry is evolving as rapidly now as at any time in his career.

“This includes new OEMs entering the market, the transition to lower emission cars and trucks and the continued evolution of automotive retail, all of which create great opportunities,” Politis says.

“I am convinced larger groups, like Eagers, are best placed to navigate these changes, invest with our key OEM partners and grow materially into the future.

 “I personally plan to continue to play an active role as a shareholder and board member of Eagers to help identify and capitalise on the many opportunities ahead,” he says.