AP Eagers acquires Crampton Automotive Group

Company News

AP Eagers Limited (ASX:APE) has agreed to acquire the automotive retail business of the Crampton Automotive Group.
 
The businesses employ 170 staff and generate annual revenue of approximately $130 million.
 
The company said total estimated consideration of $30 million inclusive of goodwill, estimated net assets and transaction costs but excluding vehicle inventory, reflects expected sustainable earnings from existing operations of approximately $6 million per annum.
 
The transaction is expected to complete at the end of June 2016. The consideration will be funded via the issue of one million ordinary AP Eagers shares to the vendors and cash drawn from available funds and existing debt facilities.
 
AP Eagers recorded a net profit of $44.07 million at 30 June 2015

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