Eagers confirms Canberra dealership group buyout

ASX-listed company Eagers Automotive has confirmed it will go ahead with the July-scheduled acquisition of Janrule Automotive Group from WFM Motors Pty Ltd. giving it a sizeable market footprint in the Australian Capital Territory.

However, the acquisition is still subject to approval from the other shareholders of Eagers Automotive at an extraordinary general meeting to be confirmed for mid-July, given that WFM Motors Pty Ltd holds more than a 27% shareholding of the company, and WFM executive chair Nick Politis is also a non-executive director on the board of Eagers.

Eagers Automotive says it has signed binding agreements to acquire the Janrule Automotive Group and properties for a total purchase price of $193 million, comprised of $75 million of goodwill, $110 million property and $8 million net assets.

It says the acquisition is expected to complete in late July 2022 and remains subject to customary conditions precedent, including formal OEM approvals, landlord consents and finance approval.

The vehicles 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 Janrule Automotive Group dealerships operate across 10 owned properties and three commercially leased sites. 

According to Eagers Automotive, the 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 the listed company 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.