Vertu Motors plc announces first acquisition in over two years

Vertu Motors plc has announced its acquisition of Hughes Group Holdings Limited.

The agreement, signed for £21.8m, will increase the Gateshead-based auto dealer group’s network of sales and aftersales outlets to 125 locations.

The six outlets added are forecast to be earnings enhancing in the first full year of ownership.

Hughes represents the Mercedes-Benz, Skoda, Jeep and Peugeot brands with facilities across Beaconsfield, Aylesbury, High Wycombe and Wendover.

For the year to December 31 2017, the company generated a pre-tax profit of £2.1m against revenues of £150m. Hughes’ operational management will remain in place following acquisition.

Vertu Motors is funding the deal through its existing cash resources and borrowing facilities.

Robert Forrester, CEO of Vertu Motors, said: “The Hughes business has operated in the Beaconsfield area for over 40 years, and is very well established in this attractive market area, serving an excellent demographic profile for the Mercedes-Benz brand.

“Our disciplined approach to allocating shareholders’ funds has meant that this is our first acquisition for over two years.”

He continued: “Given the strength and location of the business and franchises we are acquiring, the board is confident to make this investment which will be earnings enhancing in its first full year of ownership. We would expect the acquisition to bring synergies and we also expect there to be opportunities to reduce working capital levels.”