MOTORCYCLE HOLDINGS REVS UP, ANNOUNCING THIRD ACQUISITION IN A MONTH
Written on the 11 April 2017 by Business News Australia
MOTORCYCLE Holdings (ASX: MTO) has announced its latest pickup in a string of acquisitions which have bolstered its east-Australian network.
The motor dealer is set to acquire Trinder Avenue Motors, which includes the operation of Sunshine Coast Harley-Davidson, before the end of the financial year.
This move will take Motorcycle Holdings' dealership network to 27 locations across the eastern seaboard.
David Ahmet, Motorcycle Holdings Managing Director, says the Sunshine Coast dealership boasted an annual turnover of $8.5 million in FY16 and is a strong addition to the company portfolio.
"We are delighted to acquire Sunshine Coast Harley-Davidson, a strong successful dealership just north of Brisbane," says Ahmet.
"This acquisition will further strengthen our position as Australia's largest motorcycle dealership operator."
Earlier this year the company acquired Action Motorcycles on the Gold Coast on 9 March, and Evolution Motorcycles in Victoria's Epping on 17 March.
The current buyout of Trinder Avenue Motors is to be funded from company cash reserves and is expected to be earnings accretive on settlement.
The sale will take place following the completion of due diligence procedures and the official green light from both the manufacturer and the landlord associated with the property.
Motorcycle Holdings shares closed out yesterday at $3.99 and are continuing to trade flat as of 1:29pm.
Business News Australia
Author: Business News Australia