SYDNEY, AUSTRALIA: Autosports Group Limited (ASX: ASG) has entered into an settlement through its wholly owned subsidiary, ASG Melbourne Pty Ltd, to buy the enterprise and assets of Motorline BMW, Motorline MINI, Motorline Bodyshop, Gold Coast BMW and Gold Coast MINI (Motorline Businesses).
The Motorline Businesses are privately owned by Eastcoast Automotive (QLD) Pty Ltd, Eastcoast Asset Services Pty Ltd, Service Master (Aust) Pty Ltd and Motorline Bodyshop Pty Ltd.
The buy consideration consists of $60 million for goodwill, plant and equipment topic to usual adjustments. The consideration is meant to be funded by a mixture of money reserves and a debt facility.
CEO of Autosports Group, Nick Pagent said: “Having solely recently expanded our partnership with BMW Group in New Zealand with our acquisition of Auckland City BMW, securing the Motorline and Gold Coast BMW/MINI dealerships scales up our illustration of BMW and MINI. The transaction aligns with our technique of representing luxurious manufacturers in key metropolitan areas.”
Motorline BMW, MINI and Bodyshop can be found within the quickly rising Logan City, roughly 23km south of the Brisbane CBD. This dealership is present process a facility improve to bring it in line with the newest BMW company identity, similar to Autosports Group’s recent Melbourne BMW Kings Way upgrade.
The Gold Coast BMW dealership represents the BMW brand on the Gold Coast and Northern NSW region. The Motorline Bodyshop additionally provides an additional complementary income stream to the core South Brisbane and Gold Coast dealerships.
The Motorline Businesses’ income for FY22 was roughly $261m and net revenue earlier than tax was roughly $12m.
Completion is scheduled for 31 January 2023 topic to acquiring BMW Group, financier and lessor consents, acquiring a QLD motor dealer licence, the discharge of encumbrances and finalising the fit-out prices for the facility upgrade. Autosports Group has additionally accomplished authorized and monetary due diligence in relation to the transaction.