Tustain Motors shifts gears with buy-out

A North East car dealership chain has steered into a new era following a change of ownership.

Tustain Motors, which operates seven sites across Northumberland, the Borders and East Lothian, has been acquired in a management buy-out. 

The deal sees long-standing directors David Storey and Brian Baxter step back from day-to-day operations to take on co-chairman roles.

Headquartered in Ashington and employing 112 staff, Tustain Motors was founded in 2009 and named after its retired co-founder, John Tustain. 

The business generated nearly £41 million in turnover last year, with profits of £1.1 million. 

Alongside its dealerships, the company runs Bosch Care Service Centres, providing vehicle servicing and repairs.

Accountancy and advisory firm Azets acted on behalf of Tustain Motors during the transaction, with support from Newcastle-based law firm Mincoffs. 

The buy-out secures the business’s future under its management team, ensuring continuity for staff and customers across its network of sites.

David Foreman, partner of Azets, who worked with colleague Oliver Williams on the deal, added: “Tustain Motors is an extremely successful operator in the region’s automotive retail sector, with various franchised dealerships.

“It was a pleasure to support exiting owners David Storey and Brian Baxter, who have been growing the business over the past 16 years, over the course of this transaction.”

Lee Humble, head of UK corporate finance at Azets, which is based in Newcastle, added: “Tustain has been a long-standing client of ours in the North East region and it has been a pleasure watching the business go from strength to strength. 

“Seeing businesses thrive against the current economic background is incredibly inspiring, and Tustain Motors has strong foundations for a very exciting future with the internal team taking things forward with a renewed dynamism. 

“It’s great to see succession planning for a regional powerhouse and we wish them all the best for the next chapter and look forward to supporting them in the future.”

David and Brian added: “David and the Azets team have been a great support helping us achieve a management buy-out.

“From the first time we met with David to discuss the project, we had full confidence in the Azets team.

“Throughout the entire process, whether on accountancy and forecasting, tax advice or raising finance, the advice, support and handholding was exemplary. 

“Nothing was too much trouble and they were always available and on hand; a great team to deal with.”

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