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Motorcycle Holdings to buy Harley Davidson dealership in Melbourne

Consumer Discretionary
ASX:MTO      MCAP $111.0M
26 August 2019 03:44 (AEST)

Motorcycle Holdings has entered into a contract to acquire Northside Harley-Davidson dealership in Brunswick, Victoria.

The acquisition is expected to be earnings accretive in 2019/20.

For the deal to go ahead it is subject to due diligence, lease assignment and manufacturer approval. It is expected to settle in October.

Northside Harley-Davidson has an annual turnover of approximately $9 million in 2019 and has 14 staff. The store sells 226 new and used motorcycles per annum.

Harley Davidson is one of the most popular motorbike brands in Australia. The company has more than 1,400 independently owned Harley Davidson dealerships in nearly 100 countries.

MotorCycle Holdings is Australia’s leading motorcycle dealership and accessories group.

In the new motorcycle category, MotorCycle Holdings sells 8 of the top 10 selling motorcycle brands in Australia. In the used motorcycle category the company sells all of the top 10 selling brands (by number of used motorcycle sales) in Australia

CEO David Ahmet said he was pleased the company was able to acquire another Harley- Davidson dealership.

“Northside Harley-Davidson is a strong and successful Melbourne dealership and this acquisition enables us to enhance our business footprint and expand the dealership network in Victoria,” he said.

The new deal provides the company with further growth opportunities and geographical diversification.

The Northside dealership is approximately 6km north from the CBD in Melbourne.

David believes the acquisition will benefit both businesses.

“For Northside Harley-Davidson customers and staff, Motorcycle Holdings brings additional financial strength to the dealership, and is committed to continuing to deliver excellent customer service and after sales service support,” he said.

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