Top Rooster Politis brings another deal to Eagers as his stake tops $1 billion
Nick Politis has struck another big deal with the sale of a group of motor dealerships in Victoria to Eagers, a company in which he is the biggest shareholder.
James Tedesco of the Roosters celebrates with Roosters Club Chairman Nick Politis following their win over the Raiders in the 2019 NRL Grand Final between the Canberra Raiders. (Photo: AAP Image/Dan Himbrechts)
The acquisition would add about $1 billion a year to Eagers revenue and Politis has said $25 million of the funds he receives from the deal will be invested back into Eagers shares.
Politis, who was raised in Ipswich and Blackall and is also chair of the Sydney Roosters, already holds about 70 million shares in Eagers valued at just over $1 billion and is on the Eagers board. Because of his investment in the Victorian businesses, the deal would need shareholder approval.
It follows a similar deal last year when Eagers bought the ACT-based WFM in which Politis was chair and a major shareholder.
The $245 million deal is for a group of dealerships covering a host of brands including BMW, Jaguar, Mercedes Benz and Mitsubishi. About $100 million of the deal would be for property assets, $111 million for goodwill and $34 million for assets.
Eagers said the deal represented a significant scale increase of about $1 billion in revenue in a market it sees as having big potential.
Chief executive Keith Thornton said it was a compelling opportunity for the company.
“It will increase our presence in Melbourne, a region we have previously identified as having a significant runway for growth, taking our annual turnover in this region alone from $1.5 billion to $2.5 billion,” he said.
“The 12 OEMs (original equipment manufacturers) brand partners included in the transaction represent a high-quality portfolio including material prestige market weighting.”
Politis said the market was evolving as rapidly as at any time in his career.
“This includes new OEMs entering the market, the transition to lower emission cars and trucks and the continuing evolution of automotive retail, all of which creates opportunities,” he said.
“I am convinced larger groups, like Eagers, are best placed to navigate these changes, invest with our key OEM partners and grow materially into the future.
“With $25 million of the purchase price being reinvested in Eagers’ shares, I personally plan to continue to play an active role as a shareholder and board member of Eagers and help to identify and capitalise on the many opportunities ahead.”
