AP Eagers (ASX:APE) has executed binding agreements with the Tony White Group for the sale of the Kloster Motor Group in the Newcastle and Hunter Valley region.
The sale was announced in July 2019 to satisfy the ACCC to secure regulatory approval for AP Eagers’ proposed merger with Automotive Holdings Group (ASX:AHG)
Under the agreements, the business will be sold for $54 million for goodwill and estimated net assets.
The real property assets will be sold for $52.9 million, resulting in total sale proceeds of $106.9 million.
The Tony White Group is a Brisbane-based and family-owned business that represents all of the major automotive brands with operations spanning the eastern seaboard of Australia.
Klosters is an 85-year-old iconic automotive retailer generating approximately $420 million in annual revenue.
Shares in AP Eagers (ASX:APE) are trading 0.04 per cent lower at $13.45.