North East motor retailer Vertu has snapped up an online wiper blade business based in the West Midlands as part of moves to add new services and revenue streams to the business.
The Team Valley based business, which has a network of 160 sales and aftersales outlets under the Bristol Street Motors, Vertu Motors and Macklin Motors banners, has acquired Wiper Blades Ltd, based in Kidderminster for a cash consideration of £3.5m.
Wiper Blades is a leading e-commerce business specialising in the online sale of car wiper blades and other associated products through operating websites.
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Vertu said the acquisition is in line with its strategy to develop ancillary businesses, to add revenue and profit streams that complement the core business, while also adding digital capabilities and reach.
The group said the newly acquired company also complements the Powerbulbs.com business it bought in June 2021, and that both make complementary additions to the successful Aceparts e-commerce business that the group acquired in 2015.
The share capital of Wiper Blades Limited, which was formed in 2005, was acquired for a cash consideration of £3.5m, which includes £1.1m of cash, subject to finalising the completion accounts. The consideration includes a payment in respect of goodwill of £2.4m.
For the year ended August 31 2021, the business chalked up revenues of £2.2m and an unaudited profit before tax of £500,000, and the deal is expected to be earnings enhancing in the current year.
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Robert Forrester, chief executive of Vertu Motors, said: “Our e-commerce parts business is performing strongly and the addition of Wiper Blades will be accretive both financially and strategically to that part of the group. The acquisition is in line with our strategy to develop ancillary businesses which complement the core business and enrich our digital capabilities to continue to provide technology leading edge service to our customers.”
Vertu posted record full-year revenue of £3.6bn and pre-tax profits of £80.7m – a rise of 228% – for the year ended February 28, 2022.
Its strong performance came in the face of supply chain constraints on both new and used cars. Figures have also shown the automotive industry suffered its second weakest May in three decades. Just 124,394 new cars were registered in May, the Society of Motor Manufacturers and Traders said – down 20.6% compared with the same month last year. It was the second lowest number of new cars registered in May since 1992.