Peter Warren Automotive Holdings Ltd (ASX: PWR) shares climbed around 5% today after the dealership group announced a major move to acquire Wakeling Automotive for $28 million.
Wakeling Automotive is a large multi-franchised dealer network operating across Macarthur, Wollongong, Shellharbour, and Moss Vale in NSW. It represents 16 popular car brands, including Hyundai, Kia, Mitsubishi, Nissan, Honda, Suzuki, Volkswagen, Mercedes-Benz, and Isuzu Ute.
The acquisition materially increases Peter Warren's presence in one of Australia's fastest-growing automotive regions.
The purchase price of approximately $28 million is funded through existing debt facilities and includes a significant goodwill component ($21.7 million of goodwill) as well as net assets at completion.
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Why investors like this deal
This acquisition adds scale for Peter Warren, and management expects the deal to be immediately EPS accretive, even after funding costs. Wakeling Automotive generates roughly $500 million in annual turnover and employs around 370 staff. Peter Warren itself had revenue of $2,483 million in FY25.
It also complements Peter Warren's existing Western Sydney operations. With the senior Wakeling team joining Peter Warren to continue running day-to-day operations, it reduces execution risk and preserves the culture of the 40-year-old family business.
Peter Warren CEO Andrew Doyle highlighted that the acquisition strengthens Peter Warren's growing network and aligns with the group's long-term consolidation strategy across the eastern seaboard. For investors, it reinforces the narrative that Peter Warren is emerging as a serious consolidator in the dealership landscape.
ASX All Ords share bottom line
Peter Warren is gaining scale in a key region, and while the transaction is still subject to ACCC and OEM approvals, today's share price move suggests the market sees it as a smart, earnings-enhancing step forward.
Peter Warren shares are up 21% year to date and have a dividend yield of approximately 3%.
