Australian vehicle dealership group Eagers Automotive is set to sell its Daimler Truck and Bus service dealerships and its Stillwell Trucks site to US based Daimler truck dealer Velocity Vehicle Group for a reported $108 million.
The move will see Velocity Vehicle Group, which has 36 dealership locations in major US markets, become a key partner in the Daimler Truck and Bus Australian dealership network, pending completion of formal approval processes.
Daimler Truck and Bus President and CEO, Daniel Whitehead, thanked Eagers Automotive for its partnership during a time of growth for Daimler commercial vehicles. “We have achieved a lot together and I wish them all the best for the future,” he said.
In the same fashion as its US operation, Velocity Vehicle Group’s Australian network will only sell and service commercial vehicles. It will exclusively represent Daimler brands Mercedes-Benz, Freightliner and Fuso.
“We are extremely pleased to work with a group that has such an incredible track record with Daimler Trucks in the United States which consistently delivers on a core commitment to commercial vehicle customers,” said Whitehead.
“Daimler currently has the best and most advanced cab-over and conventional trucks in Australia, and they will now be sold and supported by a strengthened dealership network of equal calibre.”
Co-Presidents of Velocity Vehicle Group Brad Fauvre and Conan Barker added, “We could not be more excited to have the Australian Daimler dealerships of Eagers Automotive join the Velocity team. We have seen the dedication of everyone at each dealership, and we know that together with their US VVG colleagues, we will be able to deliver world-class service to the Australian truck market.”
The Eagers Automotive Daimler truck business employs approximately 650 people across various locations including Brisbane, Newcastle, Sydney, Melbourne, Adelaide and Perth.
Eagers Automotive will continue to own and operate its existing Webster Truck and Isuzu Truck businesses, which are currently part of the automotive retail division.
Following completion of the transaction, the Hino and Iveco operations will be incorporated into the automotive retail division.
The acquisition is due to be completed by the first half of 2021.