Automotive Holdings Group to acquire McGrath Lander09:48,...

Automotive Holdings Group to acquire McGrath Lander
09:48, Friday, 30 June 2006

Sydney - Friday - June 30: (RWE Aust Business News) - Automotive
Holdings Group Ltd (ASX:AHE) has entered into a Heads of Agreement to
acquire the McGrath Lander Group, one of the largest automotive retailers
in NSW.
Automotive has proposed to pay a purchase price of up to $69
million to acquire the McGrath Lander Group, which has annual turnover of
more than $650 million. The purchase price is subject to final
structuring of the proposed acquisition.
The acquisition - which is also subject to satisfactory due
diligence and is conditional upon the approval of relevant motor vehicle
manufacturers - will be earnings accretive in year one.
The deal will be funded through a combination of equity, debt and
cashflow.
The McGrath Lander Group operates 15 motor vehicle dealerships in
the Sydney metropolitan area. The group holds franchises with 10 motor
vehicle manufacturers, encompassing seven of the top 10 selling brands in
Australia.
Automotive Holdings said acquisition will consolidate its
position as Australia's largest automotive retailer and represents the
largest growth initiative since the company listed on the ASX in November
2005.