Acquisition of Vauxhall and SEAT Outlets
8 January 2013
Vertu Motors plc ("Vertu", the "Company" or the "Group")
Acquisition of Vauxhall and SEAT Outlets in Carlisle
Vertu Motors plc, the fast growing automotive retailer with a network of 92 sales and aftersales outlets across the UK, is pleased to announce that it has acquired the entire share capital of Dobies (Carlisle) Limited which has traded as a Vauxhall outlet in Carlisle, and the business and certain assets of the SEAT outlet also operated by Dobies in Carlisle. As part of the transaction, Vertu has acquired the long lease (for 123 years) of this multi-franchise dealership, which is situated in a prime location adjacent to Junction 44 of the M6, to the north of Carlisle. This well established business will extend Vertu's presence in the North of England, linking with the Group's existing Vauxhall dealerships in Sunderland, Durham, Newcastle and Hexham. Following the acquisition, the Group now has 13 Vauxhall outlets and four SEAT outlets. For the year ended 31 December 2012 the management accounts of the acquired businesses showed a turnover of £10.7m and an operating loss of £0.1m.
The total estimated consideration is £4.3m. The consideration will be settled in cash from the existing resources of the Group. The vendor has today entered into a subscription agreement to acquire, for £2.0m in cash, 5,128,205 ordinary shares in the Company (the "Subscription Shares") at 39 pence per share, and has undertaken to the Company not to dispose of the Subscription Shares for a period of 12 months from issue, except in certain limited circumstances. The Company expects that the Subscription Shares will be issued and allotted by 30 April 2013. The Subscription Shares will be fully paid and will rank pari passu in all respects with the Company's existing ordinary shares of 10p each. Application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM.
Robert Forrester, CEO of Vertu Motors plc said:
"This acquisition extends the Group's operations across the North of England and into Cumbria for the first time. These two outlets complement the Group's existing businesses in the North of England, and in particular its Vauxhall operations in Newcastle, Hexham and Durham which are adjacent to the acquired territory. The additional SEAT outlet extends further the Group's relationship with the Volkswagen Group.
"The Group continues to be active in identifying additional growth opportunities as it seeks to develop a scaled automotive retail operation in the United Kingdom. The Group is now the seventh largest automotive retailer measured by revenue."
For further information please contact:
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Vertu Motors plc |
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Robert Forrester, CEO |
Tel: 0191 491 2111 |
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Michael Sherwin, FD |
Tel: 0191 491 2114 |
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Panmure Gordon (UK) Limited |
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Hugh Morgan |
Tel: 020 7886 2500 |
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Callum Stewart Adam Pollock |
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Espirito Santo Investment Bank |
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Peter Tracey Jamie Richards |
Tel: 020 7456 9191 |
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FTI Consulting |
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Josephine Corbett |
Tel: 020 7831 3113 |
Notes to Editors
Vertu Motors is a fast growing automotive retailer with a network of 92 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 91 franchised sales outlets and 1 non-franchised sales operation from 75 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
This information is provided by RNS
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