2 December 2013
Vertu Motors plc ("Vertu" or the "Group")
Acquisition of three Volkswagen dealerships in Nottingham and Mansfield
Vertu Motors plc is pleased to announce that it has acquired the entire share capital of Brookside (1998) Limited ("Brookside") which operates three well established Volkswagen dealerships, two in Nottingham and one in Mansfield. The assets acquired include one freehold and two leasehold properties. Total consideration, which includes £1.6m of goodwill, is estimated at £4.7m and will be settled in cash from the Group's existing resources.
For the year ended 31 December 2012 the management accounts of Brookside showed a turnover of £35.7m and EBITDA of £0.4m. The Board expects this acquisition to be earnings enhancing in its first full year of ownership.
Highlights:
· Further development of the Group's representation of Volkswagen in the East Midlands, following the acquisition of the Boston and Lincoln Volkswagen dealerships in July 2013
· Significant opportunities for marketing and management synergies across Vertu Volkswagen
· Well established dealership operations in attractive motor retail locations, close to other Vertu businesses
Robert Forrester, CEO of Vertu Motors said:
"We are delighted to announce the next step in our growth with Volkswagen and the Volkswagen Group. Volkswagen provides customers with a strong, high quality product offering at attractive prices, and the Vertu Volkswagen name will now gain real critical mass as we develop its presence in the East Midlands.
"Nottingham and Mansfield are important centres where Vertu already represents several manufacturer partners including Citroen, Hyundai, Honda and Suzuki. Adding Volkswagen to this list will further strengthen our business.
"We are continuing to develop the Group by adding to existing franchise relationships and exploring new manufacturer partners. This acquisition increases the Group to 104 sales and aftersales outlets and will enable us to generate further profitable growth for our shareholders."
For further information please contact:
Vertu Motors plc |
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Robert Forrester, CEO |
Tel: 0191 491 2111 |
Michael Sherwin, FD |
Tel: 0191 491 2114 |
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Panmure Gordon (UK) Limited |
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Hugh Morgan |
Tel: 020 7886 2500 |
Callum Stewart |
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Liberum Capital Limited |
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Peter Tracey Simon Stilwell |
Tel: 020 3100 2000 |
FTI Consulting |
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George Parker |
Tel: 020 7831 3113 |
Notes to Editors
Vertu Motors is the sixth largest automotive retailer in the UK with a network of 104 sales and aftersales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu Honda, Vertu Volkswagen, Farnell Land Rover and Macklin Motors brand names.
Vertu Motors was established in November 2006 with the strategy to consolidate the UK motor retail sector. It is intended that the Group will continue to acquire motor retail operations to grow a scaled dealership group. The Group's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through its national dealership network. The Group currently operates 102 franchised sales outlets and 2 non-franchised sales operations from 85 locations across the UK.
Vertu Motors group websites - www.vertumotors.com / www.vertucareers.com
Vertu Motors brand websites - www.bristolstreet.co.uk / www.vertuhonda.com / www.macklinmotors.co.uk / www.farnelllandrover.com / www.vertuvolkswagen.com
