AHG buys Melbourne dealerships

Logistics and car retailer Automotive Holdings Group has acquired two dealerships in Victoria for $8.5 million plus stock and assets, in the same precinct where it is building a new Jaguar and Land Rover dealership.

Perth-based AHG said today it would pay $8.5 million to acquire the Ford and Mitsubishi dealerships at the Essendon Fields automotive precinct, plus stock and assets at valuation.

The two dealerships are in the same precinct where AHG said it was also developing a new Jaguar and Land Rover dealership, on a greenfield site.

AHG managing director John McConnell said the acquisition was a valuable addition to the company’s Melbourne presence.

“We expect to drive both incremental revenue and cost synergies across the two dealerships,” he said.

“The transaction is firmly in line with our ongoing automotive aggregation strategy and an excellent opportunity to secure dealerships that can be integrated into an AHG retail hub.”

Post-acquisition, which is expected to settle in May, AHG will hold 184 automotive franchises at 111 dealership locations in Australia and New Zealand.

AHG shares were 0.7 per cent lower to $4.06 each at 10:50am.