AHG buys up east coast franchises

Automotive Holdings Group has further grown its presence on the east coast with the acquisition of five franchised car dealerships in NSW for $8.5 million plus stock and assets.

Perth-based AHG will acquire the five dealerships – which trade as the Hunter Motor Group – comprising Subaru, Honda, Isuzu UTE, VW Passenger and VW Commercial franchises.

They are in close proximity to AHG’s existing Nissan, Mazda and Kia dealerships in NSW, and will become part of the group’s broader Newcastle operations.

“The proposed acquisition is aligned to our automotive growth strategy to acquire and aggregate dealerships in and around existing AHG dealerships,” AHG managing director John McConnell said.

“We expect to drive both incremental revenue and cost synergies across the five dealerships.

 “It is a well‐run business with a stable team and brands that can be rolled into an existing well‐performing AHG hub with a number of initiatives that we can put in place to further improve the operating result.”

AHG shares were 2.3 per cent lower to $3.33 each at the close of trade.