Gateshead’s Vertu Motors acquires Welsh van business for £7.5m

Auto dealer Vertu Motors plc has snapped up an online van retailer for seven figures.

The Gateshead-based firm acquired Vans Direct Ltd, an online company headquartered in Newport, for £7.5m.

Vans Direct was founded in 1999 and welcomed its current leadership, managing director Jane Pocock and operations director Richard Simmonds, in 2009.

Mr Simmonds and the company’s 42 staff will join Vertu following the acquisition, while Ms Pocock will remain on board as a non-executive director of Vans Direct.

Vertu has settled an initial payment of £7m in cash using existing resources.

The remaining amount, estimated at £500k but potentially rising to £2m, is subject to Vans Direct achieving or exceeding a target performance over the next two years.

Vans Direct generated revenues of £34.6m in the year to October 31 2017.

Vertu CEO Robert Forrester said: “This is an exciting development in a growing space, which is synergistic and parallel to our core motor retail business and which strengthens our multi-channel offering.

“We expect Vans Direct to generate an earnings stream with higher gross and net margins than those typically earned by the Group, and we believe that the future growth prospects for this new business are significant.”

He continued: “By working with the complementary skills of the Vans Direct team and the Group’s existing operations, we believe that we can build a significant business which will meet the needs of a wider range of customers.”

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