48cb7aca-c464-41b1-851f-f2e44360352a.pdf



19 January 2016


Company Announcements Office ASX Limited



Acquisition of Crampton Automotive Group


AP Eagers Limited (ASX:APE) has agreed to acquire the automotive retail businesses of the Crampton Automotive Group. The group includes West-Star Motors and Toowoomba Holden operating in Toowoomba and representing the Mercedes-Benz, Hyundai, Peugeot, Citroen, Performax, HSV and Holden brands along with Port City Autos representing the Holden, Subaru, Chrysler Jeep Dodge, and Isuzu Trucks brands in Maryborough/Hervey Bay, Queensland.


The businesses employ 170 staff and generate annual revenue of approximately $130 million.


Mark Crampton has developed an extremely well-managed dealership operation achieving above- benchmark returns and being one of the top performing regional dealers for a number of the franchises represented. AP Eagers expects the businesses will continue to thrive under its decentralised management structure.


This acquisition will enhance AP Eagers' strong presence in the South West Queensland region, which was established with the acquisition of the Black Toyota group in 2014. It also provides an opportunity for further expansion in the growing Hervey Bay region.


Total estimated consideration of $30 million inclusive of goodwill, estimated net assets and transaction costs but excluding vehicle inventory, reflects expected sustainable earnings (Profit Before Tax) from existing operations of approximately $6 million per annum.


The consideration will be funded though the issue of one million ordinary AP Eagers shares to the vendors and cash drawn from available funds and existing debt facilities.


The transaction is expected to complete at the end of June 2016.


The transaction is subject to satisfactory due diligence, completion of formal transaction documentation and manufacturer approval.


ENDS


For more information: Martin Ward

Managing Director & Chief Executive Officer (07) 3608 7100

www.apeagers.com.au


A.P. EAGERS LIMITED

ABN 87 009 680 013


Registered Office

80 McLachlan Street, Fortitude Valley, QLD, 4006

P.O. Box 199, Fortitude Valley, QLD, 4006

T (07) 3608 7100 F (07) 3608 7111

E corporate@apeagers.com.au

A.P. Eagers Limited issued this content on 2016-01-19 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-19 13:33:14 UTC

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