Can Autosports Group Seamlessly Integrate Barry Bourke Dealerships and Boost Margins?
Autosports Group is set to acquire ten Barry Bourke Motors dealerships in Victoria for $34 million, expanding its luxury automotive footprint and strengthening key manufacturer partnerships.
- Acquisition of 10 Barry Bourke Motors dealerships in Victoria
- Deal valued at approximately $34 million, including $14 million in shares
- Adds $212.4 million in FY25 revenue based on unaudited accounts
- Strengthens relationships with Audi, Jaguar Land Rover, Volvo, and Geely
- Expected to be immediately earnings accretive with margin improvements
Strategic Expansion in Victoria
Autosports Group Limited (ASX, ASG) has announced a significant acquisition that will bolster its presence in Victoria’s luxury automotive market. The company has entered into an agreement to acquire ten dealerships from Barry Bourke Motors, covering a range of prestigious brands including Audi, Jaguar Land Rover, Volvo Cars, Geely, and several others. This move is poised to deepen Autosports Group’s footprint in key Victorian locations such as Berwick and Doncaster.
Financial and Operational Highlights
The acquisition is valued at approximately $34 million, comprising $29 million for goodwill and around $5 million for tangible assets. Notably, $14 million of the purchase price will be paid in ASG shares, issued at $4.50 each, while the cash portion will be funded through existing debt facilities. The acquired dealerships reported an unaudited FY25 revenue of $212.4 million, signaling a substantial boost to Autosports Group’s top line.
CEO Nick Pagent emphasised the strategic nature of the deal, highlighting its role in strengthening collaboration with key original equipment manufacturers (OEMs) such as Audi, Jaguar Land Rover, and Volvo Cars. He also noted that the acquisition is expected to be immediately earnings accretive, with margins anticipated to align with Autosports Group’s averages within the first year.
Integration and Market Positioning
Prior to this transaction, Autosports Group already operated multiple dealerships for Audi, Jaguar Land Rover, Volvo, and Geely across Australia and New Zealand. This acquisition not only expands their dealership network but also secures flagship locations in important metropolitan markets. The company’s diversified portfolio now spans over 75 businesses, including new and used vehicle sales, motorcycle dealerships, and specialist collision repair facilities.
The deal remains subject to customary conditions precedent, including obtaining consents from the relevant motor vehicle manufacturers, a standard hurdle in dealership acquisitions that can sometimes delay or complicate completion. The transaction is scheduled to complete in December 2025, pending these approvals.
Looking Ahead
As Autosports Group integrates these new dealerships, investors will be watching closely for evidence of margin improvement and operational synergies. The company’s ability to leverage its scale and OEM relationships will be critical in realising the anticipated earnings accretion. Meanwhile, the share issuance component of the deal will slightly alter the capital structure, a factor for shareholders to monitor.
Bottom Line?
This acquisition marks a decisive step in Autosports Group’s growth strategy, but successful integration and manufacturer approvals will be key to unlocking its full potential.
Questions in the middle?
- Will manufacturer consents be granted smoothly and on schedule?
- How quickly can Autosports Group improve margins at the acquired dealerships?
- What impact will the $14 million share issuance have on existing shareholders?
