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Imperial Holdings Limited - Imperial buys 9 Ford dealerships in Sydney
IMPERIAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa)
Registration number: 1946/021048/06
(`Imperial`)
Share code: IPL
ISIN: ZAE000003620
Imperial buys 9 Ford dealerships in Sydney
Imperial, the diversified mobility group has, subject to statutory approvals,
entered the Australian car dealership market with the acquisition of nine Ford
dealerships in the metropolitan areas of Sydney.
Bill Lynch, CEO of Imperial said the acquisition will make Imperial the largest
Ford dealer in Australia. `We believe that Ford will grow its market share in
the fast growing Sydney market. Ford has some very attractive new models for
that market, and we expect the brand to continue its recent advances. We are
committed to devote sufficient financial and human resources to the opportunity
to make it a great success,` Lynch said.
Imperial acquired the dealerships from Ford Motor Company of the USA, which
acquired the dealerships in 2000 as part of its global distribution strategy at
that time. `The group has now returned to the basics of designing and
manufacturing great motor vehicles, and is divesting of its interest in the
Sydney dealerships,` a spokesman for Ford Australia said.
The combined turnover of the dealerships exceeded R2,8bn in 2004 and employs 800
staff. The dealerships are:
City Ford, Sydney
City Ford, Rockdale
Dale Ford, Bankstown
Jubilee Ford, Five Dock
Brad Garlick Ford, Ryde
Power Ford, Baulkham Hills
Cumberland Ford, Blacktown
Alto Ford, Artarmon
Titan Ford, Brookvale
Total assets of the dealerships amount to approximately R630 million of which a
substantial portion is funded by normal inventory and debtors finance facilities
from Ford Credit.
Ford sold 135 000 units in Australia in 2004, achieving a national market share
of 14.2%. The acquired dealerships sold 14 898 units with a 12.4% share of
registrations in its primary market area. Ford is the third largest selling
brand in Australia after Toyota and General Motors.
While approximately 15% of Imperial`s operating assets are invested outside
South Africa, this investment in Sydney is the group`s only interest in
Australia. This acquisition is in line with Imperial`s strategy to carefully
expand geographically in product markets that are known and well-understood by
the group`s management team. Members of Imperial`s senior management have
specific experience of the Australian automotive market.
Imperial`s other off-shore interests are in Europe where it operates logistics,
clearing and forwarding, inland ports and waterway operations with particular
interests in the automotive, steel and related industries in Germany, as well a
Toyota Forklift distributorship in the United Kingdom.
Lynch said that there were several similarities between the automotive markets
of Australia and South Africa in terms trading styles, brand promotion,
financing and customer preferences. He confirmed that the business will be run
by local management reporting to their South African structures. `The
dealerships` trade names and styles will be retained to protect their individual
cultures and goodwill,` he said.
Mr Rod Gailey, an Australian national with extensive experience in the
Australian motor industry has been appointed Chief Executive Officer. Mr Gailey
is currently responsible for overall management of a large part of the acquired
business.
3 February 2005
BEDFORDVIEW
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 03/02/2005 05:00:16 PM
Produced by the JSE SENS Department
