Peter Warren Automotive (ASX:PWR) acquires Penfold Motor Group

• Dealership group Peter Warren Automotive (PWR) has completed the acquisition of Penfold Motor Group for $104 million
• PWR says the acquisition of Penfold allows it to enter the Victorian automotive market which accounted for 25 per cent of Australian new car sales in 2020
• The buy also reportedly offers ‘attractive’ financial metrics, management expertise, and provides platform for further growth
• The purchase involves an $88 million cash payment and a scrip component of $16 million which results in about 5.18 million shares being issued to Penfold at $3.02 per share
• PWR ended Wednesday’s session 1.01 per cent in the red at $2.95

Peter Warren Automotive (PWR) has completed the acquisition of Penfold Motor Group.

The $104 million purchase was first announced on November 8 and was reportedly an “important step” for PWR to deliver its growth strategy.

Peter Warren is a group of automotive dealerships which has been operating in Australia for over 60 years.

Penfold is also a family-owned automotive dealership that’s based in Victoria and has been operating since 1964. It currently employs around 330 staff and generated revenue of $354 million in the 2021 financial year.

According to Peter Warren, the acquisition allows it to enter the Victoria automotive market which represented 25 per cent of Australian new car sales in 2020. It also offers ‘attractive’ financial metrics, management expertise, and provides platform for further growth.

PWR CEO Mark Weaver commented on the acquisition.

“The Penfold Motor Group is a very well-regarded business with a rich history of operating in the region, and the acquisition will be accretive for our shareholders. We are delighted to welcome the management team into our group and expand our operating footprint in the region over time.”

The $104 million acquisition involves an $88 million cash payment and a scrip component of $16 million which results in about 5.18 million shares being issued to Penfold’s vendors at $3.02 per share.

PWR ended Wednesday’s session 1.01 per cent in the red at $2.95.