Motor retailers Vertu have announced the £11m acquisition of Ford dealerships in Lancashire.
The Gateshead-headquartered business has bought the trade and certain assets of two Ford main dealerships in Bolton and Wigan, and two satellite operations in Walkden and Horwich, from Gordons (Bolton) Ltd.
The Gordons business has represented Ford in Lancashire for over 100 years and employs 218 people across the four locations.
Total consideration is estimated at £11m and will be settled in cash from the group’s existing resources.
No material goodwill is payable on the transaction.
The assets acquired include four freehold properties valued at £6.9m and includes a development site at Wigan where a new Ford dealership will be built over the next six months, to allow relocation from the current leasehold premises.
Last accounts for Gordons, for the year ended December 31, showed revenue of £76.7m and operating profit of £300,000.
This transaction increases the group’s representation with Ford to 22 outlets, consolidating the group’s position as Ford’s third largest partner in the UK.
The group now operates a total of 114 sales and aftersales outlets across the UK.
Robert Forrester CEO of Vertu said: “The board is delighted to announce the acquisition of this well established business in Lancashire, which will provide further scale to the group’s Bristol Street Motors Ford business.
“We are pleased to welcome over 200 new colleagues into the group who bring with them a wealth of experience in the Ford brand. This acquisition also brings with it some substantial freehold property assets which the group will actively manage to enhance shareholder value.”