You are using an older browser version. Please use a supported version for the best MSN experience.

Turners in $15.3m deal for Buy Right Cars

NZN 12/07/2016 Paul McBeth

Financial services firm Turners Group is to buy Auckland used car importer and dealer network Buy Right Cars for $15.3 million.

It Turners will pay about $11.9m in cash and $3.4m in shares for Buy Right Cars, with $6m based on the dealership's performance over the next two years, the company said.

The deal is subject to bank funding terms becoming unconditional and expected to settle on July 29.

"The acquisition significantly increases our footprint and presence in the key Auckland market where we are currently under-weighted compared our high market share in other regions," chief executive Todd Hunter said.

"With a high percentage of Buy Right Cars sales financed, we will also continue to increase motor vehicle receivables and related consumer insurance with greater control over origination."

The acquisition of Buy Right Cars will add eight dealer sites across Auckland and a workshop recently set up in Manukau. The unit is expected to add more than $4m to earnings before interest and tax under Turners' first year of ownership, rising after that.

Chairman Grant Baker said the company is still looking at other acquisitions.

image beaconimage beaconimage beacon