AutoWallis Closes Nelson Group Fleet Management Division Acquisition
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After the Hungarian Competition Authority (GVH) granted its approval, AutoWallis' acquisition of the Nelson Group’s fleet management division has been successfully closed, according to a press release sent to the Budapest Business Journal.
With the purchase of the Nelson Group’s fleet management division, the Premium category Budapest Stock Exchange company AutoWallis is taking another step in the direction of expanding its mobility services.
Via its entry into the fleet management market, the AutoWallis Group 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 retail and wholesale divisions.
The acquisition means AutoWallis is acquiring a 2-2.5% share in the Hungarian market with a single step. AutoWallis is financing the acquisition from its own funds and will not use external financing or treasury shares.
The purchase is taking place with conditions advantageous to both parties, which, thanks to Nelson Fleet Leasing’s revenue-generating capability, ensures a short-term return on the goodwill paid as part of the purchase price, the press release notes.
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 million. The total transaction volume equals HUF 2.98 billion, of which HUF 335 million will be deferred as payments made in the coming two years. The sellers have set aside a part of the purchase price for the participation in the AutoWallis Employee Share Ownership Plan by the Nelson employees and executive officers newly joining the AutoWallis Group.
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