Vertu, the automotive retailer with a network of 122 sales and aftersales outlets across the UK, announces that it has acquired the trade and assets of three Honda dealerships in Nottingham, Derby and Stockton-On-Tees from Lookers PLC for a total consideration of approximately £2m.
Acquisition Highlights:
• Purchase of three Honda dealerships, all located in contiguous territories to existing Vertu Honda dealerships
• Consolidates the Group as Honda’s largest retail partner in Europe with 12 car dealerships
• Regional synergy opportunities with existing Vertu Honda operations
• Board expects acquisition to be earnings enhancing in first full year of ownership
After the acquisition of these three leasehold dealerships the Group will operate twelve Honda car outlets and two Honda motorcycle outlets.
The Nottingham and Derby outlets have been owned by Lookers PLC for several years and their sales territories are adjacent to the Group’s existing Honda outlets in Mansfield and Grantham. The Stockton-On-Tees dealership was formerly owned by the Benfield Group and is located adjacent to the Group’s existing Honda outlets in Durham and Sunderland.
Total consideration was approximately £2.0m, including goodwill of £0.2m. The consideration has been settled in cash from the Group’s existing resources.
For the year ended 31 December 2015 the three dealerships achieved unaudited revenues of £39m and a break even trading result.
The Board expects this acquisition to be earnings enhancing in its first full year of ownership.
Robert Forrester, CEO of Vertu Motors said:
“We are delighted to be expanding our representation with Honda in these areas which will provide us with strong marketing and other operational synergies.
“Honda has a very strong new product line up with New Jazz, New Civic, New CR-V, New HR-V alongside sportier premium products such as Type R and NSX. This is driving increased consumer interest and demand.
“Our existing business achieved the accolade of Honda Dealer Group of the Year in December 2015 for the second successive year, recognising its performance in customer satisfaction in particular, and the newly acquired outlets will enable us to build upon this success driven by our excellent franchise management team.”