Autosports Group (ASX:ASG) Announces Acquisition of Barry Bourke Motors for $34 Million
In a recent ASX announcement, Autosports Group Limited (ASX:ASG) has detailed a significant expansion of its Victorian operations. The company has entered into an agreement to purchase ten Barry Bourke Motors dealerships for approximately $34 million. This transaction is set to add $212.4 million in annual revenue to the luxury automotive retailer’s portfolio whilst strengthening partnerships with key premium original equipment manufacturers (OEMs).
The Autosports Group Barry Bourke acquisition secures dealership locations in Victoria’s established affluent markets, including a multi-brand hub in Berwick and a Jaguar Land Rover flagship dealership in Doncaster. Furthermore, the transaction is structured as $29 million for goodwill plus approximately $5 million for net tangible assets. Notably, $14 million of the consideration will be paid in ASG shares issued at $4.50 per share.
Expected completion is scheduled for December 2025, contingent upon obtaining consents from the relevant motor vehicle manufacturers. This deal marks an important milestone for Australia’s only ASX-listed specialist prestige and luxury automotive retailer, which operates more than 75 businesses across key metropolitan markets.
Acquisition Details and Company Commentary
The purchase of Barry Bourke Motors enhances ASG’s relationships with three premium OEMs: Audi, Jaguar Land Rover, and Volvo Cars. This consolidation creates increased volume commitments, which improves the company’s negotiating position with manufacturers while securing prime locations in Melbourne’s eastern corridor.
Nick Pagent, Chief Executive Officer, stated: “This acquisition deepens our collaboration with Jaguar Land Rover, Audi, Volvo Cars and Geely, while expanding our presence in Victoria. The acquisition is expected to be immediately earnings accretive, with business margins anticipated to improve to Autosports Group’s average margins within the first 12 months.”
The move positions ASG to capitalise on established customer bases in high-income demographics with strong luxury vehicle demand. Moreover, the multi-brand hub model at Berwick is designed to create operational efficiencies and cross-selling opportunities across premium and volume prestige brands.
With ASG’s shares on issue at 206,886,414 and a market capitalisation of approximately $898 million, this investor update outlines a measured expansion that avoids excessive dilution whilst maintaining growth momentum.
What Dealerships Does the Barry Bourke Acquisition Include?
The agreement comprises ten dealerships across two locations in Melbourne’s eastern corridor. The Berwick location houses nine brands: Audi, Volvo Cars, Jaguar Land Rover, Geely, GMSV, LDV, Peugeot, Renault, and Suzuki. In addition, the Doncaster location operates as a standalone Jaguar Land Rover dealership.
Both sites represent established positions in affluent catchment areas with proven luxury vehicle demand. The multi-brand hub structure at Berwick delivers operational synergies through shared facilities and centralised management.
Barry Bourke Dealership Locations
| Location | Brands Represented | Category Mix |
|---|---|---|
| Berwick | Audi, Volvo Cars, Jaguar Land Rover, Geely, GMSV, LDV, Peugeot, Renault, Suzuki | Premium luxury + volume prestige |
| Doncaster | Jaguar Land Rover | Premium luxury flagship |
The acquisition expands ASG’s Victorian footprint in markets where it already maintains a presence, creating regional clustering that enhances brand visibility and customer convenience.
How Does the Acquisition Strengthen ASG’s Brand Portfolio?
Prior to this announcement, ASG operated 6 Audi dealerships, 2 Jaguar Land Rover dealerships, 7 Volvo Cars dealerships, and 1 Geely dealership across its network spanning Sydney, Melbourne, Canberra, Brisbane, Gold Coast, and Auckland.
The Barry Bourke transaction increases ASG’s dealership count with Audi, doubles its Jaguar Land Rover footprint by adding two locations, and strengthens its Volvo Cars market position. This brand concentration creates multiple customer touchpoints in the same market whilst increasing volume commitments with OEMs.
Brand Portfolio Enhancement
| Brand | ASG Pre-Acquisition | Barry Bourke Addition | Benefit |
|---|---|---|---|
| Audi | 6 dealerships | +1 (Berwick) | Enhanced OEM partnership depth |
| Jaguar Land Rover | 2 dealerships | +2 (Berwick, Doncaster) | Doubled JLR footprint |
| Volvo Cars | 7 dealerships | +1 (Berwick) | Strengthened market position |
| Geely | 1 dealership | +1 (Berwick) | Emerging luxury brand exposure |
The deal also provides exposure to volume prestige brands including GMSV, LDV, Peugeot, Renault, and Suzuki, diversifying revenue streams beyond ultra-premium segments.
What Is the Financial Structure of the Barry Bourke Acquisition?
Total consideration for the Autosports Group Barry Bourke acquisition is approximately $34 million. This figure is composed of $29 million for goodwill and approximately $5 million for net tangible assets, plant and equipment, subject to usual adjustments.
The payment structure splits the consideration between $14 million (41% of total) in ASG shares issued at $4.50 per share, and approximately $20 million in cash. This implies the issuance of approximately 3.1 million new ASG shares to the vendors, representing a dilution of approximately 1.5% based on current shares on issue.
The cash portion is intended to be funded through existing debt facilities, avoiding the need for a dilutive equity raising.
Acquisition Consideration Breakdown
| Component | Amount | Percentage of Total |
|---|---|---|
| Goodwill | $29.0M | 85.3% |
| Net tangible assets/plant & equipment | ~$5.0M | 14.7% |
| Total Consideration | $34.0M | 100% |
Payment Method Structure
| Payment Method | Amount | Percentage of Total |
|---|---|---|
| ASG shares at $4.50 | $14.0M | 41.2% |
| Cash (existing facilities) | ~$20.0M | 58.8% |
| Total Payment | $34.0M | 100% |
Is the Barry Bourke Acquisition Earnings Accretive for ASG?
Management has explicitly stated the Autosports Group Barry Bourke acquisition is expected to be immediately earnings accretive from the December 2025 completion date. Business margins at the Barry Bourke dealerships are anticipated to improve to Autosports Group’s average margins within the first 12 months post-acquisition.
This margin improvement pathway indicates current Barry Bourke margins likely sit below ASG’s group average, providing a quantifiable operational improvement opportunity. Accretion drivers include the immediate EBITDA contribution from the acquired dealerships and margin expansion through operational integration.
The 12-month margin convergence timeline provides investors with a measurable catalyst to track post-integration performance.
Key Accretion Drivers:
- Immediate revenue and EBITDA contribution from established dealerships
- Margin expansion through standardised operational processes
- Group purchasing power across parts, accessories, and aftermarket products
- Centralised finance and insurance product offerings
Want more ASX news?
Looking to stay ahead of major developments in ASX industrials companies? Subscribe to StockWire X’s free Big News Blasts and join over 20,000 investors receiving instant email alerts on significant industrials announcements, each accompanied by detailed analysis. With a quality filter ensuring only major news events are distributed, subscribers gain access to the most important market-moving information without the noise. Join today to receive comprehensive insights delivered directly to your inbox.