Listed car retailer Autosport Group (ASX: ASG) has acquired Melbourne BMW and Ducati dealer Stillwell Motor Group for $55 million, strengthening the group’s foothold in the premium automotive sector.
Stillwell, which also sells BMW Motorrad, MINI, Volvo and MG brands in Victoria, has been owned by the Stillwell family for the past 75 years and operates four dealerships in Melbourne. $10 million of the acquisition price will be net tangible assets and the remaining $45 million will be goodwill.
Sydney-based Autosport Group, which operates more than 55 retail operations across Sydney, Melbourne, Brisbane, the Gold Coast and Auckland, is prepared to acquire all the shares in BS Stillwell Motor Group Pty Ltd for cash.
However, the Stillwell family can choose to receive up to 15% of the purchase consideration in Autosport Group stock at $2.09 per share.
“Stilwell Motor Group is a perfect fit for Autosport Group’s premium brand and metropolitan market growth strategy,” said Autosport CEO Nick Pagent.
“With the BMW, BMW Motorrad, MINI, Volvo, MG and Ducati brands covering four Victorian locations and generating annual revenues of over $345 million, the acquisition is expected to increase Autosport Group’s annual revenues by approximately 13 per cent once complete.”
“We would like to thank the Stillwell family, BMW Group and Volvo Cars for their goodwill and support throughout this transaction.”
Stillwell Motor Group was founded in 1949 by racing driver Bibb Stillwell as a dealer for the MG, Morris and Jaguar brands and has been owned by the Stillwell family for the past 75 years.
“As we celebrate our 75th year of directly owning and operating franchised automobile and motorcycle dealerships, our award-winning dealerships are pleased to be joining forces with Autosport Group, a company that recognizes our heritage and is positioned to drive the future growth of the business,” Stilwell directors Marianne Stilwell and Chris Stilwell said in a joint statement.
“I would like to thank my incredible staff for the outstanding service they have provided to our customers and our long-standing brand partners, BMW Group and Volvo Cars.”
Autosport said the cash portion of the transaction will be funded by existing cash reserves and new and existing debt facilities.
The deal is due to be signed in October 2024, but is conditional on Autosport receiving consent from the car manufacturers involved.
Autosport Group is scheduled to report its financial results for fiscal year 2024 on Thursday, August 22nd.
