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Luxury car seller Autosports Group (ASX: ASG) will soon have its first Porsche dealership after reaching an agreement to acquire Gulson Canberra for $13 million, in a move that also represents an entry into the ACT market for the company whose share price has surged 37 per cent since March.
Now with its market capitalisation sitting just shy of $500 million, Autosports just secured a $350 million syndicated facility agreement last month with Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corporation (ASX: WBC), BMW Australia Finance Limited and Mercedes-Benz Financial Services Australia.
The deal is due for completion in September with the Gulson Canberra business and assets - including Porsche Centre Canberra - to be held by the Sydney-based group's wholly owned subsidiary Autosports Leichhardt.
Gulson Canberra also operates Porsche, Fiat, Alfa Romeo, Leapmotor, Abarth and Jeep in Canberra.
To be paid with a combination of cash reserves and existing debt facilities, the purchase consideration consists of $12 million for goodwill and approximately $1 million for net tangible assets, plant and equipment, subject to usual adjustments.
"We are delighted to have the opportunity to represent the Porsche brand," says Autosports CEO Nick Pagent
"This strategic acquisition expands our footprint into the Australian Capital Territory market and strongly aligns with our prestige and luxury brand growth strategy.
"We thank Graham Gulson and Porsche Cars Australia for their goodwill and support throughout the transaction."
Nick Pagent co-founded Autosports Group with his father Ian Pagent in 2006, and combined they own approximately 53.1 per cent of the company, with its 75-plus dealerships representing around 79 per cent of luxury brands that are in the market.
The group currently has locations in Sydney, Melbourne, Brisbane, Gold Coast and Auckland.
According to a half-yearly presentation in February, Autosports' most represented brand was BMW with 11 dealerships, followed by MINI with eight, and Audi and Volvo with six.
Other brands it sells include Jaguar, Land Rover, Mercedes-Benz, Alpina, Aston Martin, Bentley, Ducati, Kia, Lamborghini, Maserati, McLaren, Rolls-Royce, Subaru, Volkswagen and Zeekr.
Autosports also recently appointed a new chairman Peter O’Connell, the founder and former CEO of mobile phone plan provider Amaysim, who also currently chairs internet services provider Superloop (ASX: SLC).
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