AutoWallis strengthens its Czech retail presence with the largest acquisition in its history to date

By: Trademagazin Date: 2024. 11. 18. 09:01

With the largest acquisition in its history to date, AutoWallis further strengthens its dominant role in the region after agreeing to acquire 100 percent of the MILAN KRÁL GROUP operating in the Czech market. In addition to strengthening the retail market position of the Czech BMW, the automotive company of the Hungarian stock market also includes new brands (Mercedes-Benz, Ford) and new activities (sales and servicing of Mercedes-Benz Truck commercial vehicles) in its portfolio, further increasing and stabilizing its ability to generate profit through diversification. The closing of the transaction is expected to take place by the end of this year, subject to the approval of the competition authorities and the fulfillment of other conditions.

With a significant step in line with the renewed strategy announced in May of this year, the AutoWallis Group further strengthens its position as a dominant regional car trade and mobility service provider: it acquires the MILAN KRÁL GROUP (MILAN KRÁL HOLDING) a.s.). Together with the holding company, the group, which includes a total of 6 companies and employs a total of 200 people at 5 locations, is the largest acquisition in the history of AutoWallis to date. The transaction further strengthens the presence of AutoWallis in a country that is generally more profitable than the Hungarian market, where the number of new car registrations in 2023 exceeded 244,000 units, which is almost double the number in Hungary. The importance of the transaction is shown by the fact that MILAN KRÁL GROUP’s sales revenue in 2023 was approximately HUF 50 billion and its EBITDA was HUF 2.9 billion, it has continuously increased its sales over the past 3 years, and has an EBITDA of over 6 percent (according to Czech regulations) margin achieved. (The AutoWallis Group closed the year 2023 with an EBITDA of HUF 20 billion in addition to sales revenue of HUF 366 billion). The final closing of the acquisition requires the approval of the Czech competition authority and the fulfillment of other closing conditions, so it is expected to take place in December 2024. This is the second Czech retail acquisition for AutoWallis, since in July it closed the purchase of three BMW dealerships from Stratos Auto, with which it bought BMW dealerships in Prague and two other Czech cities.