(Alliance News) - Pasquarelli Auto Spa announced Friday that it has signed an agreement to lease a business unit of Giansante Auto Srl, a dealer of the Fiat, Abarth, Lancia and Fiat Professional brands for the provinces of Chieti and Pescara, as well as a retailer of used cars, founded in 1949.

In 2022 Giansante Auto had revenues of about EUR24.3 million, a negative EBITDA of about EUR1.1 million and a loss of about EUR1.4 million. In 2023, the company activated the negotiated settlement procedure for business crisis resolution. The transaction is aimed at the possible future purchase of Giansante Auto.

The rental fee for the business unit is set at EUR10,000 per month and does not include rent for company buildings, any costs for upgrading the premises and current ancillary charges strictly related to the operation of the business unit.

The company specifies that "the transaction represents for Pasquarelli Auto an important opportunity to consolidate its positioning in the territory, as well as to complete its offer with regard to the Stellantis Group, with the inclusion of brands from the FCA portfolio - Fiat, Abarth, Lancia and Fiat Professional - which will be added to those of PSA derivation already in the portfolio, Peugeot, Opel, Citroen and DS Automobile. With this transaction, Pasquarelli Auto expands its offering by a total of 27 brands."

The six-month deal, renewable three months at a time, includes the continuation in the leases of Giansante Auto's two locations in Chieti and Pescara, the usufruct of the equipment, facilities and operating license, the staff consisting of 23 employees as well as the transfer of the purchase and sale contracts already stipulated for approximately 49 cars, including down payments and any scrapping contributions requested by Giansante Auto The stock of new and used cars, as well as all receivables, payables, contingent assets and liabilities, cash and guarantees of Giansante Auto remain excluded from the Transaction.

Pasquarelli Auto's stock closed Friday up 1.9 percent to EUR0.86 per share.

By Chiara Bruschi, Alliance News reporter

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