Autosports Group Expands Victorian Footprint with Acquisition of Barry Bourke Motors

About Autosports Group Ltd

Founded in 2006 with a single prestige dealership in Sydney, Autosports Group (ASX: ASG) has grown into Australia’s largest ASX-listed luxury and prestige automotive retailer. Today the Group operates an extensive network spanning Sydney, Melbourne, Canberra, Brisbane, the Gold Coast and Auckland, representing leading luxury marques including Audi, BMW, Mercedes-Benz, Volvo, Porsche, Jaguar Land Rover and more. ASG’s integrated model includes new and used cars, motorcycles, finance and insurance, aftermarket, servicing, collision repair and specialist brand facilities, making it one of the most diversified auto retail groups in the region.

The Group’s strategy has focused on expanding in affluent, high-growth metropolitan corridors where customer demand for premium brands remains robust, despite cyclical fluctuations in broader automotive retail. Against that backdrop, the acquisition of Barry Bourke Motors marks a transformative moment in ASG’s Victorian expansion, positioning the company firmly among the most dominant automotive retailers in the state.

Strategic Importance of the Acquisition

The acquisition includes ten dealerships located across Berwick — one of Melbourne’s fastest-growing population corridors — and Doncaster, a key luxury-brand hub in the city’s north-east. These sites collectively represent a wide portfolio of premium and high-growth automotive brands, including Audi, Volvo Cars, Jaguar Land Rover, Geely, GMSV, LDV, Peugeot, Renault and Suzuki. ASG CEO Nick Pagent said the transaction “deepens our collaboration with Jaguar Land Rover, Audi, Volvo Cars and Geely, while expanding our presence in Victoria,” noting that reinforcing relationships with core OEM partners was central to the company’s strategic rationale. The acquisition is expected to be immediately earnings-accretive, with Autosports Group targeting operational improvements that will bring Barry Bourke dealership margins in line with broader Group averages within the first year of ownership. This outlook reflects ASG’s strong track record of lifting profitability at acquired dealerships through integration, inventory optimisation, brand alignment and improved aftersales processes.

Financial Terms and Funding

The total purchase consideration for the acquisition is approximately $34 million, comprising $29 million attributed to goodwill and $5 million relating to net tangible assets, plant and equipment. Of this amount, $14 million will be issued in Autosports Group shares priced at $4.50 each, a structure that strengthens alignment with the Barry Bourke ownership team while preserving cash for operational investment and further expansion opportunities. The remaining cash component will be funded via ASG’s existing debt facilities, reflecting the company’s strong balance sheet and capacity to access capital on favourable terms. Completion of the transaction remains subject to standard OEM consents and dealership transfer approvals, with finalisation expected in December 2025. The acquired dealerships generated approximately $212.4 million in unaudited revenue during FY25, a scale that is expected to materially increase ASG’s Victorian earnings contribution once fully integrated.

Operational and Network Benefits

The Barry Bourke acquisition delivers a wide range of operational and network advantages for Autosports Group. It significantly strengthens ASG’s relationships with prestige OEMs such as Audi, Jaguar Land Rover and Volvo Cars, all of which are increasingly prioritising partnerships with large, well-capitalised dealer groups capable of consistently investing in customer experience, showroom upgrades, and network standards. The dealerships’ locations in Berwick and Doncaster provide ASG with access to two of Melbourne’s most attractive automotive markets, both characterised by strong new-vehicle demand, affluent customer demographics and substantial aftersales opportunities. The transaction also broadens ASG’s multi-brand diversity by adding high-growth marques including GMSV, LDV, Geely, Peugeot, Renault and Suzuki, giving the Group greater exposure to segments such as hybrid and EV-ready mass-market vehicles, Chinese OEM entrants and performance lifestyle brands.

Operationally, the acquisition enhances ASG’s scale in servicing, parts and collision repair — key fixed-operations areas that historically deliver stable and high-margin earnings. Larger scale enables efficiencies in reconditioning, inventory sharing, trade-in processing and customer retention programs, all of which are expected to lift divisional performance. Autosports Group also anticipates meaningful integration synergies, drawing on its established national platform. These synergies include improved stock turnover through cross-site visibility, unified branding and showroom modernisation, expanded access to finance and insurance offerings, and efficiency gains in management, HR, IT and marketing functions. Management expects that once these synergies are realised, margins across the acquired dealerships will improve materially and align with Group benchmarks.

Industry Context

Australia’s automotive retail sector continues to undergo structural consolidation, driven by rising capital requirements, more stringent OEM facility standards, growing demand for EV infrastructure investment, and the shift toward digital sales models. These dynamics have placed increasing pressure on smaller independent dealerships, many of which have exited the market or been acquired by larger groups. As a result, major listed players such as Autosports Group, Eagers Automotive and Peter Warren Automotive have accelerated their expansion through acquisition to capture scale benefits, diversify brand representation and secure strategic metropolitan locations. The integration of the Barry Bourke network reflects ASG’s continued participation in this long-term consolidation trend.

Despite broader economic variability, demand for prestige and luxury vehicles has remained resilient, supported by ongoing population growth, a rising concentration of wealth in metropolitan regions and the shift toward premium hybrid and electric SUVs. Brands included in the acquisition — notably Audi, Volvo and Jaguar Land Rover — are rapidly transitioning toward electrified model line-ups, creating attractive long-term sales opportunities and high-margin servicing demand. This positions ASG favourably as OEMs increasingly seek retail partners with the financial strength and operational scale required to support the rollout of next-generation vehicles.

Conclusion

Autosports Group’s acquisition of the Barry Bourke Motors network marks a major extension of the company’s Victorian footprint and reinforces its position as Australia’s leading listed luxury and prestige automotive retailer. The transaction strengthens ASG’s relationships with globally recognised brands, enhances its presence across two strategically important metropolitan corridors, and provides immediate earnings accretion backed by significant operational synergies. As consolidation accelerates across the automotive retail sector, Autosports Group is well placed to leverage its national scale, strong OEM partnerships and disciplined expansion strategy to deliver sustained growth and long-term value for shareholders.