Off the back of its acquisition of DVG in Perth, Japan’s biggest used-car dealer, IDOM Inc has made good on its promise to expand outside of Western Australia, announcing the purchase of Melbourne-based Andrew & Wallis Motor Group.
The deal sees IDOM absorb the group’s seven franchises – Honda, Mazda, Toyota, Chrysler and Jeep, Alfa Romeo, Fiat and Isuzu Ute; all based in Essendon Fields in Melbourne’s north for an estimated sum of close to $70 million.
The franchises are on four sites on Wirraway Road, Essendon Fields: Essendon Honda, Essendon Mazda and Airport Toyota, while Essendon Chrysler and Jeep and Essendon Isuzu Ute are on the same site.
The latest Melbourne deal strengthens IDOM’s Australian growth plans, and comes just three years after the group purchased 67 per cent of WA-based DVG Automotive Group for a reported $121m.
Takayoshi Udagawa, chief executive officer of IDOM Automotive Group, the Australian subsidiary of IDOM Inc. said the timing was right for the brand to launch its eastern-Australian expansion.
“Now is the right time for IDOM to start executing its expansion strategy into the east coast automotive market,” Udagawa said.
“We have stabilised the DVG business in WA and thanks to our dedicated and committed employees, we are now delivering improved results in what is still challenging market conditions.”
Udagawa said the Andrew & Wallis’ group’s continued growth presented a strong platform from which to base IDOM’s long-term expansion operations.
“The Andrew & Wallis Motor Group is an amazing business for IDOM to grow into.”
“It has strong annual sales revenue, with strong internal processes and a committed focus on customer service, which closely aligns with IDOM’s objective of being the number one, customer-focused automotive solutions provider. It is also located in a strategic commercial precinct with excellent growth potential.”
Andrew & Wallis was started in 1991 by John Andrews and former Western Bulldogs AFL captain Steve Wallis, and has since added four additional partners.
Andrews & Wallis Motor Group part owner Steve Wallis said “IDOM has such a supportive culture. They are happy for us to continue implementing our growth strategy for the AWMG business, while offering us all of their knowledge and innovation that comes from being a global automotive leader.”
“We’re really looking forward to AWMG being a part of IDOM’s plans to be a major automotive solutions provider across Australia.”
The 2017/18 financial year report shows the group had a turnover of $261m and normalised net earnings before tax of $12m, which IDOM hopes will complement DVG’s annual turnover of $500m.
IDOM has assumed a 100 per cent stake in the company, adding to its network of more than 550 used-vehicle stores in Japan, with additional new car dealerships and international businesses.