Eagers selling Daimler Truck business to U.S interests

The ongoing simplification of the Eagers Automotive business has seen the company enter an agreement to sell its Daimler Truck business to US-based Velocity Vehicle Group (VVG) with the transaction expected to complete in the first quarter of 2021. 

It says the sale to VVG will deliver an estimated net gain before tax of $32.0m – $36.0 million1, subject to external audit and adjustments on completion.

The Eagers Automotive Daimler truck business employs more than 650 people at metropolitan and regional locations across Australia, including Brisbane, Newcastle, Sydney, Melbourne, Adelaide and Perth. 

It has also agreed commercial terms for the sale of the Milperra property, the location of the Stillwell Trucks operation, to VVG as part of the transaction. 

“The divestment of our Daimler truck operations represents another key step in the ongoing simplification of our automotive retail business. VVG will be a great home for the Daimler truck business and offers an exciting future,” Eagers Automotive CEO and managing director Martin Ward says.

The transaction is subject to conditions precedent including approval by the Foreign Investment Review Board (FIRB), consents of landlords and counterparties to material contracts, and satisfactory environmental condition reports. 

Eagers Automotive will continue to own and operate its existing Webster Truck and Isuzu Truck businesses, which are currently part of the automotive retail division. Following completion of the transaction, the Hino and Iveco operations will be incorporated into the automotive retail division, removing the requirement for a standalone national trucks division. 

VVG is an integrated network of commercial truck dealerships throughout the Southwest region of the United States of America, operating 36 commercial truck dealership locations. 

VVG is a key Daimler Truck and Bus partner and provides customers with commercial vehicles and services including leasing, rentals, equipment financing, parts, service, specialty fabrication and collision repairs.