ROLF and Pelikan-Auto are consolidating their assets
Moscow, 29 february - ROLF has announced the final stages of merger with Pelikan-Auto company. The joint company will be working under ROLF brand in the future. That will result in total of 20 auto brands and 43 show rooms in Moscow and St Petersburg together.
The deal was formed via cashless share exchange. Igor Malyarov, owner of 100% share stock of Pelikan-Auto, transferred them to Delance Limited, a holding company of ROLF Group. Thus Pelikan-Auto is becoming a part of ROLF Group retail department. Igor Malyarov will be holding a minority share stock of a joint company.
Adaptation process of Pelikan-Auto dealer centers into ROLF structure is in the final stage of completion. In particular, the IT systems are being integrated into dealer centers, and a number of certain business functions, such as accounting support, finance management and others are being consolidated under the single joint company. The employees of four of Pelikan-Auto dealer centers will be takingtraining sessions for integration to the business structure of a joint company.
IGOR SALITA, Board Chairman of ROLF:
Expansion of business via M&A deals is an important trend of modern autoretail. The bigger and more diversified the company is, the more stable it is in the times of economic turmoil. We believe that the deal between ROLF and Pelikan-Auto will create a great case for a subsequent consolidation of dealers around the market leader on mutually benefitial conditions, and we suppose that more similar deals will follow. Consolidation of assets of ROLF and Pelikan-Auto will allow the joint company to strenghten its leadership and increase the competitiveness. Given the current slowdown of the market, that will result in synergy in car sales and service revenue and contribute to a greater profitability of a joint company.
TATIANA LUKOVETSKAYA, ROLF Chief Executive Officer:
After merger with Pelikan Auto, ROLF is adding four modern dealer centers and two new brands to its assets - BMW and Nissan. That deal is a step towards gaining a greater market share, increasing the portfolio of premium brands and their contribution to a company's total sales. Consolidation of two companies under ROLF brand will allow to increase leadership on Moscow and St Petersburg markets. Balanced portfolio of brands with a great choice of premium brands is likely to become a guarantee for a successfull growth on a falling market.
Consolidation with ROLF opens a new perspective for dealer centers of Pelikan Auto and their employees. That deal not only makes the joint company more stable,given the overall market stagnation, but also opens for us an access to a unique business techniques of ROLF Group.