Lookers to become £600m-turnover company following eight-figure acquisition

Auto dealer Lookers plc is set to become a £600m-turnover business with the acquisition of car retailer Warwick Holdings Ltd.

The Manchester-headquartered firm has this morning (August 15) announced a conditional agreement to acquire Midlands-based Warwick, trading as Drayton Group, for £55.4m.

Lookers will fund the transaction via its existing bank facilities, through a conditional contract dependant on the successful sale of its parts division, which was revealed last week and is due to complete by the end of October.

Established in 1915, Drayton Group is a luxury car retailer providing sales, service, parts and repair facilities for both new and used vehicles. The company reported a turnover of £275m and pre-tax profits of £5.2m for the year ending December 31 2015.

Drayton operates from sites in Stafford, Stoke-on-Trent, Shrewsbury, Wolverhampton, Walsall, Worcester and Stourbridge.

Lookers chief exec Andy Bruce said: “As noted in our announcement on August 10 2016, we are looking to accelerate growth and today’s announcement shows we are putting the proceeds from the proposed disposal of the parts division to work as quickly as possible.

“We look forward to welcoming the Drayton team to the Lookers Group as it will enable us to increase our growth by adding value through excellent execution and targeted acquisitions. This acquisition will also help to build the company’s presence in the Midlands.”

He continued: “I have been very impressed with the quality of Drayton Group’s business, outstanding customer service and commitment to employee satisfaction.

“These qualities complement Lookers culture and will allow us to advance our strategy of having the right brands, in the right locations in order to take advantage of further growth opportunities. “

Lookers is expecting the transaction to be earnings enhancing for the year ending December 31 2017.