North East motor retailer Vertu has snapped up a Midlands company in a 拢9.2m deal.
The Team Valley firm, which now has a network of 156 sales outlets across the 海角视频 under the Bristol Street Motors, Vertu Motors and Macklin Motors banners, has acquired the entire issued share capital of Farmer & Carlisle Holdings Limited.
The long-established business operates two Toyota franchise dealerships in Loughborough, where its head office is based, and Leicester.
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The share capital was acquired for cash consideration of 拢9.2m, including 拢900,000 cash acquired and subject to finalising completion accounts, and has been funded from the group鈥檚 existing cash resources.
The business includes two freehold dealership properties, which have been included in the purchase consideration at a value of 拢6m. The deal includes a goodwill payment of 拢2.35m.
Last year the business posted revenues of 拢29.2m and a statutory pre-tax profit of 拢600,000. The acquisition is expected to be earnings enhancing for the year ending February 28, 2023.
The group鈥檚 systems and processes will be implemented immediately and the business will be branded Vertu, reflecting the continued growth of the Vertu brand in the 海角视频.
The new business will also be supported by the group鈥檚 growing website vertumotors.com.
The acquisition increases the group鈥檚 representation of the sought-after Toyota brand to a total of three locations across the East Midlands.
Following the deal, Vertu represents 13 manufacturer partners across 39 sales outlets in the East Midlands - the most significant region operated by the group in terms of sales outlets.
Robert Forrester, CEO of Vertu Motors said: 鈥淲e are delighted to announce the group鈥檚 expansion with the much sought-after Toyota franchise.
鈥淭he addition of more Toyota sales outlets to the group鈥檚 portfolio has long been a strategic objective of the group since we envisage the brand gaining market share in the medium-term and being well positioned to take advantage of opportunities as the wider automotive sector evolves.鈥
Last week Vertu hiked up its profit guidance again after seeing a boost in new vehicle supply.
New car supply has foundered due to the global chip shortages, giving a huge boost to the used vehicle market resulting in record vehicle pricing levels.
But Vertu said that October and November saw an improvement in the new car market, with supply being been better than expected.
As a result, it now expects profits for the year to be at least 拢70m, a huge increase on the original estimates of 拢28m to 拢32m.
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