Eagers Automotive acquires 50% Zagame interest

• Eagers Automotive entered a non-binding agreement to buy a 50% stake in Zagame Automotive Group.
• The partnership creates a joint venture with Bobby Zagame without immediately altering the listed share price.
• The deal aims to expand the company's luxury auto footprint while scaling operations in key markets.

Eagers Automotive (ASX:APE) signed a non-binding agreement to acquire a 50% interest in Zagame Automotive Group to form a joint venture with founder Bobby Zagame.

The target business generated approximately $600 million in annual revenue while delivering roughly 2,000 new vehicle sales and 1,800 used vehicle sales for the nine months ended June 2023.

The agreement covers dealership locations across three sub-segments and positions the business to leverage scale benefits across key markets.

The company stated that the investment remains subject to final binding documentation and formal approvals.

Following the announcement, the Eagers Automotive share price was unchanged at $20.31.

The luxury automotive market faces an ongoing shift towards low-emission vehicles alongside broader retail industry disruptions.

This joint venture expansion builds directly on the company's long-term plan to grow its footprint across Australia's premium dealership segment.