Eagers Opens New Luxury Lane with Zagame Joint Venture
Eagers Automotive has signed a non-binding agreement to acquire a 50% interest in Zagame Automotive Group, gaining exposure to 14 premium and luxury vehicle brands across Melbourne and Adelaide. The company expects the proposed joint venture to be immediately earnings accretive, although completion remains conditional and no transaction value has been disclosed.
- Proposed 50% investment in Zagame Automotive Group
- Approximately $600 million in annual revenue
- Portfolio spans 14 premium and luxury brands
- Joint venture to continue under Bobby Zagame’s leadership
- Completion targeted for end-November 2026, subject to approvals
Eagers Targets 50% Stake in Luxury Retailer
Eagers Automotive Limited (ASX:APE) is moving deeper into Australia’s premium vehicle market with a proposed 50% investment in Zagame Automotive Group, creating a joint venture with founder Bobby Zagame. The agreement is non-binding, but Eagers says the investment is expected to be immediately earnings accretive for shareholders.
Zagame generated approximately $600 million in revenue in the 12 months to June 2026, selling about 2,000 new vehicles and 1,800 used and wholesale vehicles. Its platform spans Melbourne and Adelaide, where it represents 14 brands including Ferrari, Lamborghini, McLaren, Aston Martin, Bentley, Rolls-Royce, Audi and Cupra.
Exclusive Brands Form the Strategic Appeal
The proposed partnership would give Eagers a larger foothold in sports, luxury and performance vehicles, segments where it says it has historically had limited exposure. Zagame is the exclusive Victorian dealer for several prestige marques and holds exclusive representation in Australia and New Zealand for Pagani Automobili and Singer Vehicle Design.
That reach extends beyond standard dealership sales. Zagame also operates autosports and autobody businesses focused on track-car purchasing, repair, storage and prestige vehicle panel work. Eagers said the combination could deliver scale benefits and further optimisation, while creating relationships with globally recognised manufacturers.
Keith Thornton, Eagers’ chief executive, said the discussions followed Eagers’ recent acquisition of two Audi dealerships from Zagame. Bobby Zagame is expected to continue leading the business under the joint venture, making the transaction a partnership rather than a full exit for the founder.
Completion Depends on Approvals and Final Terms
The proposed transaction still faces customary conditions, including original equipment manufacturer consent, finance approval, regulatory approval and landlord consents. Eagers is targeting completion by the end of November 2026.
The announcement does not disclose the purchase price, funding structure, valuation or the expected dollar contribution to earnings. Those details, along with the conversion of the non-binding agreement into final documentation, will determine how much value the luxury expansion ultimately adds to Eagers’ existing platform.
Bottom Line?
The strategic direction is clear, but the investment case remains incomplete until Eagers discloses the transaction economics and satisfies the required approvals.
Questions in the middle?
- What price and funding structure will Eagers agree for the 50% stake?
- How large could Zagame’s earnings contribution be once the joint venture is completed?
- Will all relevant manufacturers and landlords approve the proposed ownership structure?
