EAGERS AUTOMOTIVE AGREES SALE OF DAIMLER TRUCK OPERATIONS AND MILPERRA PROPERTY FOR $108.0 MILLION

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    • Sale to US-based Velocity Vehicle Group will deliver an estimated net gain before tax of $32.0m -
    $36.0 million1
    , subject to external audit and adjustments on completion
    • Continues ongoing simplification of Eagers Automotive business
    Eagers Automotive Limited (ASX: APE) announces that it has executed a binding agreement for the
    sale of its Daimler truck business to Velocity Vehicle Group (“VVG”), a privately owned operator of
    commercial truck dealerships based in the United States. Eagers Automotive have also agreed
    commercial terms for the sale of the Milperra property, the location of the Stillwell Trucks operation,
    to VVG as part of the transaction.
    VVG is an integrated network of commercial truck dealerships throughout the Southwest region of
    the United States of America, operating 36 commercial truck dealership locations. VVG is one of the
    key global partners with Daimler Truck and Bus and provides customers with a complete line-up of
    commercial vehicles and services including leasing, rentals, equipment financing, parts, service,
    specialty fabrication and collision repairs.
    The Eagers Automotive Daimler truck business employs approximately 650 people at metropolitan
    and regional locations across Australia, including Brisbane, Newcastle, Sydney, Melbourne, Adelaide
    and Perth.
    Eagers Automotive will continue to own and operate its existing Webster Truck and Isuzu Truck
    businesses, which are currently part of the automotive retail division. Following completion of the
    transaction, the Hino and Iveco operations will be incorporated into the automotive retail division,
    removing the requirement for a standalone National Trucks division.
    CEO and Managing Director Martin Ward said:
    “The divestment of our Daimler truck operations represents another key step in the ongoing
    simplification of our automotive retail business. VVG will be a great home for the Daimler truck
    business and offers an exciting future.”
    1 Excluding transaction costs and the impact of AASB 16 Leases.
    The transaction is subject to conditions precedent including approval by the Foreign Investment
    Review Board (FIRB), consents of landlords and counterparties to material contracts, and satisfactory
    environmental condition reports.
    Transaction completion is anticipated in Q1 2021.

    courtesy of Bell Direct
    ======================================================================================

    DYOR

    i hold APE ( my largest holding currently )

    the market seems to like this has hit a new 12 month high

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  3. 75.1k
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    SALE OF DAIMLER OPERATIONS COMPLETED
    Eagers Automotive Limited (ASX: APE) today announces the completion of the sale of its
    Daimler Truck Operations to Velocity Vehicle Group (VVG), a privately owned operator of
    commercial truck dealerships based in the United States.
    The completion of the sale of the Milperra property to VVG remains on track to occur in the
    first half of 2021.
    The sale of the Daimler Truck Operations and Milperra property will deliver cash proceeds of
    approximately $108 million and an estimated profit before tax of $32 - 36 million(1), subject to
    external audit and final adjustments in relation to items that were estimated at completion.

    courtesy of Bell Direct
    ======================================================================================

    DYOR

    i hold APE ( my largest holding currently )

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