Frizelle’s dealership coup
Deal sees leading car retailer go up another gear
THE Gold Coast’s long-established James Frizelle’s Automotive Group is combining with a leading Sydney operator in a deal which will see it become a major national industry player.
The Peter Warren Automotive Group yesterday announced that in partnership with Quadrant Private Equity it had agreed to invest in Frizelle’s, regarded as Queens- land’s premier retailing group.
The deal brings together two car industry operators with a combined history of 100 years and potential to generate more than $1.5 billion in annual revenues.
Brett Frizelle, director and dealer principal of Frizelle’s, told the Bulletin: “We are excited to be building on the legacy of James Frizelle’s Automotive automotive Group by joining The Peter Warren Automotive Group in their next phase of growth.
“Our partnership with PWG will enable the combined group to capitalise on the significant opportunities in the automotive retailing market into the future.”
Frizelle’s in December last year commissioned construction of a new building at Gaven to house its Isuzu dealership and in March this year extended its holding in Southport.
The group bought a 2948qm showroom property at 74-80 High Street from a company held by former Gold Coast BMW dealer Bruce Lynton.
The Coast company was created three decades ago, sells more than 15,000 cars a year and made a $12.6 million profit last year.
Industry insiders have been aware of the negotiations for weeks but understand the deal – thought to be worth between $100 million and $150 million – was finally secured on Monday night.
Given the strength of new car sales, private equity investors have been sounding out opportunities in the car dealership sector.
Paul Warren, CEO of PWG, said Frizelle’s was a leading automotive retailer in Queensland and has an outstanding reputation across the industry, complementing PWG’s existing brands and locations.
“We are excited to work with Brett, Rebecca and the management team to support the growth of the combined business into the future,” he said.
Justin Ryan, Managing Partner of Quadrant, said he was impressed with the strong culture and focus on customers across both groups.