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Vertu Motors acquires online parts retailer for £2.2m

Gateshead-based car retailer Vertu Motors plc has announced the acquisition of Who’s Ace Holdings Ltd (AceParts), which operates an online vehicle parts business headquartered in Sittingbourne, Kent.

Total consideration for the deal stands at £2.2m, with Vertu initially paying £1.8m settled in cash from the group’s current resources. Moreover, the deal includes an earn-out over a five year period, which would include goodwill of £1m.

The acquisition is Vertu’s first since reporting an upsurge in pretax profits in October, whereby the company cited making acquisitions to continue its future growth.

AceParts was founded by Alan Friedman and Ben Friedman, both of whom will be joining the Group along with their team of 21 colleagues.

The firm has an established presence in the non-franchised, online, automotive parts marketplace. Vertu believes the acquisition as an opportunity to apply AceParts’ ability to efficiently manage fitment data and establish the sale of genuine, franchised parts online.

Total consideration is estimated at £2.2m which includes an earn-out over a five year period, which would include goodwill of £1m. The initial payment of £1.8m has been settled in cash from the Group’s existing resources.

For the year ended 31 March 2015, AceParts reported revenues of £4.8.m, a gross margin of 19% and EBITDA of £0.6m.

Robert Forrester, CEO of Vertu Motors, said: “This is an exciting development in a growing space, which is parallel to our core motor retail business and has synergies with it.

“We expect AceParts to generate an earnings stream with higher gross and net margins than those in motor retail, and we believe that the future growth prospects for this new business are substantial.

“By working with the niche skills of the AceParts team and the Group’s franchise partners, we believe that we can build a significant business which will meet the needs of a wide range of customers seeking specific vehicle parts.”

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