Acquisition of Honda Dealerships

RNS Number : 4918S

Vertu Motors PLC

03 December 2012

 



3 December 2012                                  

Vertu Motors plc ("the Company" or "the Group")

Acquisition of Honda dealerships from Springfield Cars Limited

Vertu Motors plc, the fast growing automotive retailer with a network of 89 sales and aftersales outlets across the UK, is pleased to announce the acquisition of the trade and assets of Springfield Cars Limited's ("Springfield") Honda operations for a total estimated consideration of £3.7m including goodwill of £0.8m.  The consideration will be settled in cash from the existing resources of the Group. Springfield has today subscribed £0.3 million in cash for 797,872 ordinary shares in the Company at 37.6 pence per share, and has undertaken to the Company not to dispose of these new shares for a period of 12 months from completion, except in certain limited circumstances.

In the year ended 31 December 2011, the management accounts of the acquired businesses showed a turnover of £29.2m and an operating profit before interest and tax of £0.3m. Due to the timing of the acquisition, the dealerships are expected to make a small loss in the three months to the end of the Group's current financial year and to become earnings enhancing in the year to February 2014.

The acquired dealerships which are located in leasehold premises in Newcastle, Durham and Sunderland add to the Group's existing portfolio of Honda car and motorcycle outlets, and this acquisition makes Vertu Motors plc the largest Honda dealer group in the UK. The Durham and Sunderland dealerships will be leased from Springfield.

Robert Forrester, CEO of Vertu Motors plc said:

"We are pleased to have acquired these Honda dealerships in the North East. We will integrate these new sites into our existing portfolio of Honda dealerships which is already well established in the East Midlands and Yorkshire, with a strong operational management team." 

"We are delighted to be growing our representation with Honda, and in so doing, becoming their most significant franchise partner in the UK. These are well established businesses, and we are confident that they will quickly generate a positive return for the Group."

For further information please contact:

Vertu Motors plc
Robert Forrester, CEO	Tel: [phone]
Michael Sherwin, FD	Tel: [phone]
Panmure Gordon (UK) Limited
Hugh Morgan	Tel: [phone]
Callum Stewart
Espirito Santo Investment Bank
Peter Tracey Jamie Richards	Tel: [phone]
FTI Consulting
Josephine Corbett	Tel: [phone]

Notes to Editors

Vertu Motors is a fast growing automotive retailer with a network of 89 sales and aftersales outlets across the UK.  Its dealerships operate predominantly under the Bristol Street Motors, Vertu Honda and Macklin Motors brand names. Manufacturer partners are Alfa Romeo, Citroen, Fiat, Ford, Honda, Hyundai, Iveco, Mazda, Mitsubishi, Nissan, Peugeot, Renault, SEAT, Suzuki and Vauxhall.

Vertu Motors was established in November 2006 and listed on AIM on December 2006, with the strategy to consolidate the UK motor retail sector. It is intended that the Group will continue to acquire motor retail operations to grow a scaled dealership group. The Group's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through its national dealership network.

The Group currently operates 88 franchised sales outlets and 1 non-franchised sales operation from 73 locations across the UK.

Vertu Motors group websites - www.vertumotors.com / www.vertucareers.com

Vertu Motors brand websites - www.bristolstreet.co.uk / www.vertuhonda.com / www.motornation.co.uk / www.macklinmotors.co.uk

 

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