AP Eagers to sell the Kloster Motor Group for $54 million

Company News

by Rachael Jones

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.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.