Eagers Automotive secures 50% stake in Australia’s premier luxury car group
Eagers Automotive (ASX: APE) has entered into a non-binding agreement to acquire a 50% interest in the Zagame Automotive Group, structured as a joint venture with founder Bobby Zagame. The business generated approximately $600 million in annual revenue in the 12 months ended June 2026, representing 14 prestigious automotive brands across Melbourne and Adelaide.
The investment is expected to be immediately earnings accretive to Eagers shareholders. Completion is subject to conditions precedent, with a target completion date at the end of November 2026.
When big ASX news breaks, our subscribers know first
What Zagame Automotive Group brings to the table
Founded by Bobby Zagame in 2000, the Zagame Automotive Group is positioned as the pre-eminent automotive retail group in Australia for sports, luxury and performance vehicles. The business comprises an industry-leading brand portfolio across two states:
- Melbourne exclusives: Aston Martin, Bentley, Brabus, Fiat, Ferrari, McLaren, Lamborghini and Rolls-Royce in Victoria, plus Abarth, Alfa Romeo, Audi and Cupra representation in dedicated prime market areas.
- Adelaide exclusives: Bentley, Ferrari and Lamborghini in South Australia, as well as authorised vehicle servicing for Rolls-Royce and McLaren.
- National distribution: Exclusive Australian and New Zealand distributor for Pagani Automobili and Singer Vehicle Design.
- Zagame Autosports Division and Zagame Autobody: Bespoke client services in purchasing, repair and storage for dedicated track car brands, and panel repairs for the prestige and luxury segment.
For the 12 months ended June 2026, the Zagame Automotive Group delivered the following results:
| Metric | Figure | Geography | Segment |
|---|---|---|---|
| Annual revenue | ~$600m | Melbourne & Adelaide | Luxury & performance |
| Brand partners | 14 | Vic & SA | Sports, luxury, ultra-luxury |
| New vehicle sales | ~2,000 | — | — |
| Used & wholesale sales | ~1,800 | — | — |
Why luxury and ultra-luxury? Understanding Eagers’ strategic shift
The mainstream automotive retail market is navigating a period of significant disruption. The rise of electric vehicles (EVs) and the entry of new market participants are reshaping how volume brands compete, compressing margins and increasing complexity for dealers operating at scale.
The luxury and ultra-luxury segment operates differently. Brand exclusivity, limited production volumes and high customer loyalty create a more insulated environment. These segments face lower levels of disruption from the current industry transition and new market entrants, according to the announcement. For investors, this means the Zagame portfolio offers exposure to a more structurally resilient part of the automotive retail market.
Eagers’ CEO Keith Thornton has acknowledged that premium and ultra-luxury has historically been an area of limited exposure for the company. The Zagame joint venture fills that gap at meaningful scale, adding 14 premium marques and approximately $600 million in annual revenue to the group’s portfolio reach.
What the deal means for Eagers investors
Immediately accretive and strategically additive
The investment is expected to be immediately earnings accretive to Eagers shareholders, though no purchase price has been disclosed in this announcement. The joint venture structure is a notable feature of the transaction. Bobby Zagame retains a 50% interest and will continue to lead the business, preserving the operational leadership and brand relationships that underpin the group’s market position.
The path to this broader partnership began with Eagers’ recent acquisition of two Audi dealerships from the Zagame Automotive Group. According to CEO Keith Thornton, that transaction opened discussions about a larger opportunity to combine the strengths of both businesses.
Executive voices — what leadership is saying
Bobby Zagame, Founder and Executive Director, Zagame Automotive Group
“This is a partnership, not an exit. I have spent decades building this business alongside our people, our customers and our manufacturer partners, and choosing the right partner mattered enormously to me. In Eagers we have found a partner who shares our ambition for growth and values what we have built. I’m excited to continue to lead the business with stronger backing behind us.”
Keith Thornton, Chief Executive Officer, Eagers Automotive
“We are delighted to partner with Bobby Zagame and the Zagame Automotive Group. Bobby Zagame is an industry leader in the premium and ultra luxury market segments, an area where Eagers has historically had limited exposure. Our recent acquisition of two Audi dealerships from the Zagame Automotive Group led to discussions with Bobby about the opportunity to combine the best of the Zagame Group with the scale benefits of Eagers. The opportunity to combine a brand portfolio such as this does not come along often and we are thrilled to be able to partner with Bobby who will continue to lead this business as part of the joint venture…”
Path to completion
The transaction is subject to the following conditions precedent, with a target completion date at the end of November 2026:
- OEM consent
- Finance approval
- Regulatory approval
- Landlord consents
- Target completion: end of November 2026
Don’t Miss the Next Consumer Discretionary Deal Before the Market Moves
Get FREE breaking ASX news delivered to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ investors who stay ahead of market-moving announcements the moment they drop. Click the “Free Alerts” button at StockWire X to start receiving alerts today.