Here's why a major NSW acquisition just sent Peter Warren shares higher

Peter Warren Automotive Holdings Ltd (ASX: PWR) shares climbed around 5% today after the dealership group announced a major move to acquire Wakeling Automotive for $28 million.

Wakeling Automotive is a large multi-franchised dealer network operating across Macarthur, Wollongong, Shellharbour, and Moss Vale in NSW. It represents 16 popular car brands, including Hyundai, Kia, Mitsubishi, Nissan, Honda, Suzuki, Volkswagen, Mercedes-Benz, and Isuzu Ute.

The acquisition materially increases Peter Warren's presence in one of Australia's fastest-growing automotive regions.

The purchase price of approximately $28 million is funded through existing debt facilities and includes a significant goodwill component ($21.7 million of goodwill) as well as net assets at completion.

Why investors like this deal

This acquisition adds scale for Peter Warren, and management expects the deal to be immediately EPS accretive, even after funding costs. Wakeling Automotive generates roughly $500 million in annual turnover and employs around 370 staff. Peter Warren itself had revenue of $2,483 million in FY25.

It also complements Peter Warren's existing Western Sydney operations. With the senior Wakeling team joining Peter Warren to continue running day-to-day operations, it reduces execution risk and preserves the culture of the 40-year-old family business.

Peter Warren CEO Andrew Doyle highlighted that the acquisition strengthens Peter Warren's growing network and aligns with the group's long-term consolidation strategy across the eastern seaboard. For investors, it reinforces the narrative that Peter Warren is emerging as a serious consolidator in the dealership landscape.

Foolish bottom line

Peter Warren is gaining scale in a key region, and while the transaction is still subject to ACCC and OEM approvals, today's share price move suggests the market sees it as a smart, earnings-enhancing step forward.

Peter Warren shares are up 21% year to date and have a dividend yield of approximately 3%.

The post Here's why a major NSW acquisition just sent Peter Warren shares higher appeared first on The Motley Fool Australia.

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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