After the acquisition of recent years that supported the expansion of its retail and wholesale activities, the AutoWallis Group is taking another important step to develop its services areas by agreeing with the more than 30 year old Nelson Group on purchasing its fleet management division. By obtaining Nelson, which is among the 10 largest players on the fleet management market, AutoWallis is acquiring a 2-2.5 percent share in the Hungarian fleet management market with a single step. AutoWallis is financing the acquisition from its own funds and will not use external financing or treasury shares. The purchase is taking place with beneficial pricing conditions, which ensures a short-term (within 2 years) return on the goodwill paid in addition to the equity of the purchased companies. In 2021, Nelson’s fleet management division achieved revenues of HUF 4.2 billion with an EBITDA of HUF 2.4 million and a pre-tax profit of HUF 230 million.

When announcing the transaction, AutoWallis CEO Gábor Ormosy explained that by entering the fleet management market, the Group has achieved yet another milestone, and is taking a large step in the direction of expanding its services portfolio, following the business developments and acquisitions of recent years that were in support of the expansion of its retailers and wholesale divisions. The transaction supports the implementation of AutoWallis’s growth strategy in a number of ways. Building on Nelson’s current market share and organically increasing it, the AutoWallis Group will be able to offer the clients of its Retail & Services Business Unit, which plans to sell almost 10 thousand vehicles in 2025, yet another service that generates significant amounts of profits. Gábor Ormosy underlined that the Nelson Group’s fleet management division has more than 30 years of experience, is excellently managed, and has similarly conservative values as AutoWallis. Nelson’s advanced corporate culture and management system enable quick and efficient integration. This step expands the portfolio with a unit that has large EBITDA-generating capacities and that is organically aligned with its vehicle sale and rental activities; with it, the Group is moving in the direction of becoming an increasingly diverse mobility service provider. Gábor Ormosy also emphasized that as the AutoWallis Group’s results grew at a rate that exceeded expectations, they are examining the possibility of increasing the previously published targets. The CEO pointed out that the previously published targets did not contain any revenue or profits obtained from fleet management activities.

The acquisition is expected to be finalized after the competition authority grants its approval, in the first quarter of 2023. The key employees and executives of the companies involved in the transaction are expected to be enrolled in the AutoWallis Employee Share Ownership Program, providing them with a long-term incentive to implement the AutoWallis Group’s strategy.

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