Member Article

Breaking news: Vertu Motors announces Land Rover and Jaguar acquisition deals

Rapidly expanding automotive retailer Vertu Motors has acquired the business and assets of Bury Land Rover in Lancashire and has also exchanged contracts to acquire the business and assets of Bradford Jaguar in West Yorkshire.

Bury Land Rover has been acquired by the Gateshead-based company from a subsidiary of Pendragon PLC and operates from leasehold premises. Total consideration, which includes £7.0m of goodwill, is estimated at £7.0m and has been settled in cash from the Group’s existing resources.

For the year ended 31 December 2014, the management accounts of Bury Land Rover showed revenue of £41m and EBITDA of £1.5m.The Board expects this acquisition to be earnings enhancing in the current financial year.

The acquisition complements the Group’s existing Land Rover dealerships in Nelson, Lancashire and across West Yorkshire and further extends the Farnell brand. The Group already operates the Jaguar franchise in the same territory with a Farnell branded dealership in Bolton.

Bradford Jaguar is being acquired from a subsidiary of Lancaster plc and operates from a leasehold property. Total consideration, which includes £0.75m of goodwill, is estimated at £0.9m and will be settled in cash from the Group’s existing resources. Completion of the transaction is anticipated on 12 May 2015 subject to certain conditions.

For the year ended 31 December 2014, the management accounts of the business showed revenues of £14.7m and a loss of £0.15m. The Board expects this acquisition to be earnings neutral in the current financial year and earnings enhancing thereafter.

The acquisition will complement the Group’s existing Land Rover dealership in Bradford and further extend the Farnell brand. Following completion, the Group will operate five Land Rover dealerships and two Jaguar dealerships.

Robert Forrester, CEO of Vertu Motors, said: “Since 2013, the Board has considered it strategically important to balance the Group’s representation of volume franchises, with increased exposure to premium franchises. Today’s announcement is a further step along this path with further extensions of our Farnell Land Rover and Jaguar brand.”

“Bury Land Rover is an earnings enhancing acquisition that will further support the profit growth of the Group in the short and medium term. Bradford Jaguar will complement our successful Land Rover operation in Bradford and will strengthen our Farnell brand in the North.”