AutoWallis Buys Nelson Group's Fleet Management Division
AutoWallis Group has agreed with Nelson Group on the purchase of its fleet management division, according to a press release sent to the Budapest Business Journal.
With the acquisition, AutoWallis is acquiring a 2-2.5% share in the Hungarian fleet management market with a single step. The group is financing the acquisition from its own funds and will not use external financing or treasury shares.
The purchase is taking place with beneficial pricing conditions, which ensures a short-term (within two years) return on the goodwill paid in addition to the equity of the purchased companies, AutoWallis says. In 2021, Nelson’s fleet management division achieved revenues of HUF 4.2 billion with an Ebitda of HUF 2.4 million and a pre-tax profit of HUF 230 mln.
AutoWallis CEO Gábor Ormosy explained that by entering the fleet management market, the group has achieved yet another milestone, and is taking a large step in the direction of expanding its services portfolio, following the business developments and acquisitions of recent years that were in support of the expansion of its retailers and wholesale divisions.
Building on Nelson’s current market share and organically increasing it, the AutoWallis Group will be able to offer the clients of its Retail & Services Business Unit, which plans to sell almost 10,000 vehicles in 2025, yet another service that generates significant amounts of profits, Ormosy said, adding that Nelson Group’s fleet management division has more than 30 years of experience, is excellently managed, and has similarly conservative values as AutoWallis.
The CEO also emphasized that as AutoWallis Group’s results grew at a rate that exceeded expectations, they are examining the possibility of increasing the previously published targets. The CEO pointed out that the previously published targets did not contain any revenue or profits obtained from fleet management activities.
The acquisition is expected to be finalized after the competition authority grants its approval, in the first quarter of 2023. The key employees and executives of the companies involved in the transaction are expected to be enrolled in the AutoWallis Employee Share Ownership Program.
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