Acquisition to accelerate Mac

RNS Number : 2899N

Vertu Motors PLC

09 June 2010

 



9 June 2010

Vertu Motors plc

("Vertu Motors" or the "Group")

Acquisition to accelerate Macklin Motors roll-out

Vertu Motors plc, the 9^th largest UK motor retailer, is pleased to announce that it has exchanged contracts to acquire two dual franchised Ford and Mazda dealerships in Glasgow and Hamilton, Scotland, through the purchase of the trade and certain assets of the business from Shields Automotive Limited.  The properties will be leasehold, with maximum consideration payable of £2.5m and this will be settled in cash from existing resources.  No goodwill is payable in the acquisition and completion is expected to take place on 30 June 2010.

In the year ended 30 June 2009, the acquired businesses had a turnover of £27.1m.

This acquisition marks the Group's third and fourth Scottish dealerships, all of which have been acquired in 2010.  Both will be rebranded Macklin Motors, which is the Group's brand established this year for current and future dealership acquisitions in Scotland.

This acquisition brings the total number of Ford dealerships operated by the Group to 19 and total number of Mazda dealerships to four.  The Group now operates 64 sales outlets in total.

Robert Forrester, CEO of Vertu Motors said:

"We are pleased to have agreed to acquire a further four sales outlets in Scotland.  This demonstrates continued delivery of our strategy to grow a scaled motor retail group across the country in targeted regions.

"We are excited by the opportunities this acquisition brings with our manufacturer partners, Ford and Mazda and both dealerships are in prime retail locations representing an excellent geographic fit with the Group's existing Scottish dealerships.

"We will now have six sales outlets in Scotland and we look forward to continuing to grow the Macklin Motors brand."

- Ends -

For further information please contact:

Vertu Motors plc Robert Forrester, CEO Michael Sherwin, FD	Tel: [phone]
Brewin Dolphin Investment Banking Alexander Dewar	Tel: [phone]
Panmure Gordon (UK) Limited Andrew Burnett	Tel: [phone]
Financial Dynamics Caroline Stewart	Tel: [phone]

Notes to editors

Vertu Motors is the 9th largest motor retailer in the United Kingdom with 64 sales outlets forming a national network, operating predominantly under the Bristol Street Motors, Bristol Street Motor Nation, Vertu Honda and Macklin Motors brand names. Manufacturer partners are Citroen, Ford, Iveco, Honda, Hyundai, Mazda, Peugeot, Renault, Vauxhall, Chevrolet, Fiat and SEAT.

Vertu Motors was established in November 2006 with the aim of consolidating the UK motor retail sector. The Group listed on AIM in December 2006.

The Group currently operates 64 franchised sales outlets, 4 non-franchised sales operations and 2 stand alone service operations from 55 locations. 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 the national network.

www.vertumotors.com

www.bristolstreet.co.uk

www.vertuhonda.com

www.motornation.co.uk

www.vertucareers.com

www.macklinmotors.co.uk

 

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