New and used vehicle sales company AP Eagers Ltd
(ASX:APE) has acquired Caloundra City Autos group of dealerships for $10.5 million.
Caloundra City Autos has an annual turnover of around $65 million with AP Eagers saying it is a financially strong, well balanced group of dealerships in a good location, achieving above industry benchmarks and capable of delivering growth in future years.
The company says the acquisition reinforces its strategy of expanding its core motor dealership activities by indentifying and acquiring strong and profitable operations in key market areas.
AP Eagers says it will use current cash resources to fund the acquisition which is expected to be earnings per share accretive immediately.
AP Eagers reported a profit for the 2008 calendar year.
