The transaction, valued at nearly HUF 50 billion in annual revenue with a robust EBITDA margin exceeding 6%, will position AutoWallis for continued growth in one of the region’s most lucrative markets. The deal is expected to close by the end of this year, pending regulatory approval and other conditions.
The Milan Král Group operates six companies across five locations and employs more than 200 people. Based in České Budějovice (147 km south of Prague by road), the group manages a diverse portfolio, including the sale and servicing of BMW, Mercedes-Benz, Mercedes-Benz Trucks, and Ford vehicles. It also handles Opel servicing and sells used autos under its auto.pro.Tebe brand.
The acquisition forms part of AutoWallis’ strategy to diversify and stabilize its revenue streams. The addition of Mercedes-Benz Trucks marks a significant new step into the heavy-duty vehicle segment, with a 3.1 hectare facility for truck sales and servicing already under construction in the Czech Republic.
AutoWallis has been expanding its presence in the Czech Republic, a market where new car registrations in 2023 reached more than 244,000, almost double the Hungarian figure. The group acquired Stratos Auto earlier this year, adding three BMW dealerships in Prague and two other cities. With the Milan Král acquisition, AutoWallis’ BMW retail market share in the Czech Republic is expected to increase from 13% to 20%.
“This acquisition is a significant step in achieving our updated strategic goals,” said Gábor Ormossy, CEO of AutoWallis Group. “By expanding our Czech operations and diversifying into new market segments, we are enhancing our ability to generate stable and sustainable returns for our shareholders. The integration of Milan Král Group will create synergies across our portfolio, further boosting efficiency and profitability.”
Ormossy emphasized the importance of the Czech market to AutoWallis’s growth strategy, particularly in the premium automotive segment. The acquisition includes a 6% market share in Mercedes-Benz sales within the Czech Republic, further consolidating AutoWallis’s position as a leader in the regional automotive sector.
The acquisition also reflects AutoWallis’s long-term vision outlined in its updated 2028 strategy. The group aims to more than double its revenue and EBITDA compared to 2023, targeting HUF 750 bln in revenue and HUF 40 bln in EBITDA by 2028. With its strong demand for premium vehicles and higher profit margins, the Czech market will play a crucial role in achieving these targets.
“We are committed to growing our presence in international markets while maintaining our focus on operational excellence,” Ormossy added. “This acquisition is a testament to our ability to execute our strategy effectively, delivering value for both our customers and shareholders.”
This article was first published in the Budapest Business Journal print issue of November 29, 2024.
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