Motor dealers Vertu have extended their presence in the North West through the £8.2m acquisition of a rival group.
The Gateshead-based firm has announced to shareholders it has bought the entire share capital of Hillendale Group Ltd, which operates a Land Rover dealership and a Jaguar dealership in Lancashire, taking its network of sales and aftersales outlets across the UK to 108.
Assets bought out include two leasehold properties, one of which is a long leasehold.
The deal is estimated at £8.2m, £6.4m of which is goodwill. The group will raise £2m of that sum through the issue of more than three million shares, priced at 58.64p per share, with the balance settled in cash from the company’s existing resources.
The acquisition represents further development of the group’s representation of Land Rover in a territory contiguous with the Group’s Farnell Land Rover business in Yorkshire extending its reach into Lancashire
Last accounts for Hillendale show that, for the year ended December 31 2013, the firm had turnover of £34.9m and EBITDA of £1m.
The board expects this acquisition to be earnings enhancing in its first full year of ownership.
Robert Forrester, chief executive of Vertu Motors said: “We are delighted to announce the next step in our growth with Jaguar Land Rover and our entry into the Jaguar franchise.”
“Land Rover remains one of the most attractive franchises from the perspective of the motor retailer, and we are very pleased to extend the reach of the Group’s highly successful businesses in Leeds, Guiseley and Bradford into Lancashire.”
Vertu Motors announces its final results for the year ended February 28 2014 tomorrow.