Rich Lister Nick Politis, owner of 27.6% of ASX-listed Eagers Automotive, will be selling privately-owned car dealerships in Victoria to the company for $245 million. The deal includes BMW and Mercedes-Benz dealerships, three properties, and has a combined annual revenue of $1 billion.
Dealerships located in Melbourne suburbs, Toorak and Mulgrave, as well as Mercedes-Benz Mornington on the Mornington Peninsula, are also part of the transaction. The purchase will also include three properties with a total land area of 53,500 square meters.
Given Politis’ close association with Eagers, an independent expert will be appointed to assess whether the fair price is being paid and will require shareholder approval. Politis, who is also the chairman of the Sydney Roosters in the NRL, believes that larger groups like Eagers are best positioned to navigate the changes in the automotive industry and grow in the future.
Eagers Automotive already operates 200 showrooms selling various popular brands, and this acquisition will help increase their presence in Melbourne, a region they have identified as having significant growth potential. The company plans to invest in their key OEM partners and expand further.
As part of the deal, Politis will receive $25 million worth of Eagers shares, with the remaining amount paid in cash. This isn’t the first time Eagers has acquired dealerships from him, as they purchased his privately owned dealerships in the ACT for $193 million in mid-2022.
In other news, Mercedes-Benz recently won a compensation claim brought against them by 38 Australian dealerships. The dealerships alleged they were forced to sign agreements that stripped them of their valuable “goodwill,” but the court ruled in favor of Mercedes-Benz, finding no evidence of unconscionable conduct.
