Vertu Motors plc Acquires two Volkswagen dealerships and opening of new SEAT dealership
Vertu Motors plc, the fast growing automotive retailer with a network of 97 sales and aftersales outlets across the UK, is pleased to announce that it has acquired the trade and certain assets of two Volkswagen dealerships in Lincolnshire from Lookers plc. The assets acquired include a freehold property in Boston and a leasehold property in Lincoln. The consideration, which includes £0.3m for goodwill, is estimated at £3.0 million and will be settled in cash from the Group's existing resources. In the year ended 31 December 2012, the management accounts of the acquired businesses showed a turnover of £20.2m and operating profit before interest and taxation of £320,000.
Highlights of the acquisition:
· Introduces the Volkswagen franchise to the Group's portfolio, building on its existing representation with SEAT, a brand which is also part of the Volkswagen Group (UK) Ltd.
· Further develops the Group's regional concentration in the East Midlands and Lincolnshire
· Freehold property and operations of an established Volkswagen dealership in Boston, adjacent to the Group's existing Honda dealership
· Leasehold property and operations of an established Volkswagen dealership in Lincoln, situated adjacent to the Group's existing Honda dealership
In addition to the acquisition, the Group announces the opening of a new SEAT dealership in Birmingham on 15 July 2013. This standalone dealership located at Star City extends the current sales territory of the Group from the existing Derby SEAT dealership into the West Midlands. This development brings the Group's number of SEAT outlets to five.
Robert Forrester, CEO of Vertu Motors said:
"We are delighted to introduce the hugely respected Volkswagen franchise which commands a UK market share of 8.75% into our manufacturer portfolio. These two dealerships will trade as Vertu Volkswagen and are situated in locations which are familiar to us from other Group operations and build on our strong presence in the East Midlands.
"We are also delighted to be opening a new SEAT dealership in Birmingham, the city where Bristol Street Motors was founded 100 years ago this year. These developments deepen our relationship with the Volkswagen Group, which we consider to be a key strategic development in building a balanced portfolio."