A.P. EAGERS SNAPS UP TONY IRELAND TOWNSVILLE
Written on the 14 June 2016
A.P. Eagers (ASX:APE) has snared another car and truck retail business in north Queensland.
The Brisbane-based automotive group will acquire Tony Ireland Townsville for between $5.5 and $7 million depending on business performance over the next three years.
The Tony Ireland Group represents car and truck brands Holden, HSV, Land Rover, Hyundai Forklifts and Jaguar and Isuzu Trucks.
The businesses employ 110 staff and generate about $85 million in revenue annually, having built a strong reputation in the region since 1985.
The transaction is expected to be completed towards the end of the year subject to due diligence, and be earnings per share accretive in 2017.
The acquisition demonstrates A.P. Eagers' strategic investment to drive growth in FY17 outlined at the annual general meeting last month.
The company is yet to release its half-year forecast, but has reported that both profit and revenue are up 9 per cent already.
A.P. Eagers chairman Tim Crommelin says the company has been able to sustain growth through diversification and acquisitions.
"At our last two annual general meetings, we have commented on our growth pattern, which has been grow, consolidate, pause," Crommelin says.
"2015 was a year of consolidating the growth we experienced in 2014 and also finalising terms for new business acquisitions hopefully to set up this year's growth.
"While we expect to see further opportunities for the acquisition of core and associated businesses, growth needs to be at a sustainable pace and we will maintain our disciplined approach in parallel with efforts to enhance existing operations and processes."
The company's acquisition of Crampton Automotive Group in Toowoomba earlier this year is expected to be finalised in July.
A.P. Eagers rolled into the top 10 of 2016 Brisbane Top Listed Companies for the first time, read more.