6 May 2014
Vertu Motors plc ("Vertu" or the "Group")
Acquisition of Hillendale Group Limited: Land Rover in Burnley and Jaguar in Bolton
Vertu Motors plc is pleased to announce that it has acquired the entire share capital of Hillendale Group Limited ("Hillendale") which operates a Land Rover dealership in Nelson, near Burnley, Lancashire, and a Jaguar dealership in Bolton, Lancashire. The assets acquired include two leasehold properties, one of which is a long leasehold. Total consideration, which includes £6.4m of goodwill, is estimated at £8.2m of which £2.0m will be settled by the issue of 3,410,475 ordinary shares in Vertu at 58.64 pence per share, with the balance settled in cash from the Group's existing resources. The vendor has undertaken to Vertu not to dispose of these new shares for a period of 12 months from completion, except in certain limited circumstances.
For the year ended 31 December 2013, the statutory accounts of Hillendale showed a turnover of £34.9m and EBITDA of £1.0m. 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 Land Rover in a territory contiguous with the Group's Farnell Land Rover business in Yorkshire extending its reach into Lancashire
· The Group's first Jaguar dealership, acquired ahead of major product releases which are planned by this franchise over the coming years
· Opportunities for marketing and management synergies as acquired businesses will operate under the Farnell banner and management structure
· Well established dealership operations in attractive motor retail locations
· Increases the Groups retail footprint to 108 sales and aftersales outlets across the UK
Robert Forrester, CEO of Vertu Motors said:
"We are delighted to announce the next step in our growth with Jaguar Land Rover and our entry into the Jaguar franchise. Land Rover remains one of the most attractive franchises from the perspective of the motor retailer, and we are very pleased to extend the reach of the Group's highly successful businesses in Leeds, Guiseley and Bradford into Lancashire. The Jaguar franchise is set to see substantial new product flow in the next few years following significant product development investment by Jaguar Land Rover. The Group is therefore looking forward to partnering with this exciting British-built brand."
The Group will release its final results for the year ended 28 February 2014 on 7 May 2014.
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 |
Panmure Gordon (UK) Limited |
Tel: 020 7886 2500 |
Hugh Morgan |
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Callum Stewart |
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|
|
Liberum Capital Limited |
Tel: 020 3100 2000 |
Peter Tracey |
|
Jamie Richards FTI Consulting |
Tel: 020 3727 1000 |
George Parker |
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Notes to Editors
Vertu Motors is the sixth largest automotive retailer in the UK with a network of 108 sales and aftersales outlets across the UK. Its dealerships operate predominantly under the Bristol Street Motors, Vertu, 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 106 franchised sales outlets and 2 non-franchised sales operations from 88 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.farnelljaguar.com/ www.vertuvolkswagen.com
