BMW Group Australia has announced the sale of its factory owned dealership business located in South Melbourne and Southbank, BMW Melbourne Pty Limited, to ASG Melbourne Pty Ltd, a wholly owned subsidiary of Autosports Group Limited (ASG).
The sale covers all businesses operating under the BMW Melbourne Pty Limited banner, including BMW Melbourne, MINI Garage Melbourne, Southbank Motorcycles and BMW Bodyshop.
The agreement carries provisions for the retention of current business operations, staff and processes and is a completely separate transaction from the recently announced intention to sell the BMW Southbank property located at City Road.
The transaction is subject to a number of conditions prior to completion and is expected to be completed in the final quarter of the 2017 calendar year. On completion the business will change its name to Melbourne BMW.
This acquisition provides the opportunity for ASG to consolidate its representation with the luxury brands of BMW, BMW Motorrad, MINI and ALPINA and strengthens ASG’s move into the Victorian market, which includes the recent acquisition of Doncaster BMW and Bundoora BMW.
ASG said in its ASX announcement that BMW Melbourne avhieved revenues of $236M for the 12 months ending 31 December 2016. ASG is expecting to pay around $22M for the buisnesses plus fixed asses at valuation.
BMW Group Australia CEO, Marc-Heinrich Werner, said the BMW Melbourne business was critical to the future success of the company.
“The BMW Group is about to experience a massive influx of exceptional product in the Australian market, and we are ensuring we have a seamless network structure and partners to guarantee the highest levels of customer service.
“This sale represents an extension of an already-successful relationship with Nick Pagent and the ASG Group, and I am delighted to note this further commitment to the BMW brand,” Werner said.
ASG CEO Nick Pagent said: “This acquisition is a perfect strategic and geographic fit for Autosports Group. We are looking forward to deepening our relationship with the BMW Group in the important market of Melbourne. We thank BMW Group Australia CEO Marc-Heinrich Werner for his collaborative approach to the acquisition.”