AutoWallis Gains Ownership of Fleet Management Division

After the Hungarian Competition Authority granted its approval, the acquisition of the Nelson Group’s fleet management division has been successfully closed by AutoWallis Group, the latter has announced on the website of the Budapest Stock Exchange.

By obtaining Nelson, which is among the ten largest players on the fleet management market, the automotive company has carried out an acquisition of key importance to its strategy and margin generation capabilities, according to the announcement.

It points out that with the purchase of the Nelson Group’s fleet management division, the Premium category Budapest Stock Exchange company AutoWallis is taking yet another step in the direction of expanding its mobility services. The transaction, approved by the Hungarian Competition Authority and closed this Friday, is important to AutoWallis’s strategy for a number of reasons: the AutoWallis Group can, by building on Nelson’s current market share and continuing its organic growth, offer the clients of its Retail & Services Business Unit, including the members of the Wallis group, substantial profit-producing services.

With its entry into the fleet management market, the AutoWallis Group says it has arrived at 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 retail and wholesale divisions.

The acquisition of the more than 30-year-old Nelson means AutoWallis is acquiring a 2-2.5% share in the Hungarian 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 conditions advantageous to both parties, which, thanks to Nelson Fleet Leasing’s revenue generating capability, ensures a short-term (possibly within two years) return on the goodwill paid as part of the purchase price.

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. The fleet management division being taken over is excellently managed and represents values similarly conservative to those of AutoWallis. Nelson’s advanced corporate culture and management system enable quick and efficient integration.

The total transaction volume equals HUF 2.98 billion, of which HUF 335 million will be deferred as payments made in the coming two years. The sellers have set aside a part of the purchase price for the participation in the AutoWallis Employee Share Ownership Plan (ESOP) by the Nelson employees and executive officers newly joining the AutoWallis Group, the announcement concludes.