Sydney’s car dealership family, the Suttons, are the mystery buyers who paid a 25 per cent premium for Quadrant’s stake in Peter Warren Automotive Holdings on Tuesday evening.
Peter Warren Automotive CEO Mark Weaver. Wolter Peeters
A substantial shareholding noticed filed just after market open named S.M.A Motors Pty Ltd as the buyer of 9.1 per cent of the company.
S.M.A.’s three directors are Laurie Sutton, Craig Sutton and Ryan Sutton – the father/son trio that runs the 24 franchised Suttons dealerships dotted around Sydney.
Suttons has been around since 1943, and seems like a deep-pocketed suitor.
Sutton Investments Pty Limited, the ultimate shareholding company for S.M.A. that bought the stake, posted after-tax profits of $27.9 million for the 2020 financial year – the most recent period for which its accounts are available. Revenue was a whopping $1.5 billion.
It had $146 million in cash, and $775.9 million in property, plant and equipment.
Suttons has stuck to New South Wales, while Peter Warren has presence in NSW and Queensland. Peter Warren’s IPO documents listed Suttons among the key players in fragmented Australian automotive dealership industry.
It’s an interesting play and shows Peter Warren’s already attracting attention from trade/strategic types, less than two years after it’s initial public offering.
The big question is what is Suttons after at Peter Warren.
It’s clearly flush with cash and its finances look to be in good shape. But it’s also privately owned, with no outside shareholders. And that begs the question, if Suttons’ eventual plan is to buy Peter Warren or use it as a way to list itself and give the family an exit.
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