Car dealing website sold in €30m disposal by Auto Trader
Auto Trader, the Manchester-based digital car dealing group, has sold one of its subsidiaries, Webzone, to Mediahuis Ireland for €30m.
Webzone trades in the Republic of Ireland under the Carzone brand. Mediahuis Ireland it the country’s leading print and digital media publisher which also owns CarsIreland.ie and Cartell.ie.
Carzone is the second largest automotive marketplace for retailers and consumers in Ireland and is headquartered in Dublin.
For the year ended March 31, 2022, Carzone contributed total revenue of £4.9m – which included £4.1m of retailer revenue – and operating profit of £1.3m to Auto Trader’s Group results. It represented four per cent of the company’s average retailer forecourts and four per cent of its full time equivalent employees.
Nathan Coe, chief executive of Auto Trader, said: “Carzone has been part of the Auto Trader Group for nearly 20 years, and I want to thank the whole Carzone team for their hard work during that time.
“We remain focused on our strategy in the UK, which is to grow our marketplace and establish the products and technology to enable retailers to do more of the car buying journey online, on Auto Trader.”
Xavier van Leeuwe, CEO Mediahuis Marketplaces, said: “The Carzone brand has a long standing and incredible track record in the Irish automotive space.
“The culture of excellence of its employees is a significant addition to the expertise within our group.
“Adding to our existing CarsIreland.ie and Cartell.ie brands, Mediahuis will present an unrivalled offering to the entire Irish motor industry, manufacturers, retailers and consumers alike, allowing us to build the business that will lead the industry in years to come.”
Danni Hewson, financial analyst with Manchester investment platform, AJ Bell, said: “Like a forgotten £20 note in the glove box, web-based car seller Auto Trader has pleased the market with the €30m sale of its Webzone business – which trades in the Republic of Ireland as Carzone.
“The division wasn’t high profile and there probably wasn’t a huge amount in the share price for it, so to secure a helpful cash injection and shine a headlamp on its valuation won’t have done Auto Trader any harm with investors.”
