Hinckley-based car dealer TMS Motor Group has acquired the Leicester Volvo franchise from Sturgess Group.
It means TMS now has Volvo showrooms in the East Midlands city as well as Hinckley and Coventry.
Managing director Len Hallows said: “We are delighted to have expanded our operations, because we can now represent Volvo at three different locations across the Midlands.
“Leicester represents a territory with huge potential and is contiguous to our Hinckley and Coventry market area.
“This exciting period of growth is instrumental to us achieving our goal of delivering scale to our family business.
“With this scale, we are able to invest in the talent that will drive TMS to the next level.”
Recently filed accounts show TMS had a strong 2018, with sales up from £49.6 million to almost £58.9 million. New car sales were up 11 per cent and used car sales rose 5 per cent.
Pre-tax profits were around £288,500.
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The accounts said the company’s strategy was to become the “number one choice for everything Volvo and Kia in the East Midlands”.
TMS’s relationship with Volvo stretches back more than 40 years.
It has invested in showroom refurbishments at its Hinckley and Coventry sites as part of Volvo’s new retail concept – known as the Volvo Retail Experience.
It has plans to carry out similar changes in Leicester, creating a space that will reflect Volvo’s Scandinavian design values of “calm, clean lines using premium, natural materials”.
Following the acquisition, TMS has retained all members of the Sturgess team, who will continue to look after the Volvo customer base in Leicester and the region.
Sturgess Group managing director Barney Sturgess said: “We have taken the decision to sell our Volvo business to TMS, while retaining the property at Almond Road.
“Like us, TMS is a family business and has been associated with the Volvo brand for many years.
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“All staff will transition as part of the sale and we are confident that the business and its team will flourish under TMS` stewardship.”
Sturgess of Leicester is a fourth generation motor group established in 1897 and includes Jaguar Land Rover, Hyundai, Suzuki, Fiat, Alfa Romeo and Abarth dealerships.
Len Hallows said: “Our mission is clear – we want to deliver an exceptional experience that customers trust and advocate in Leicester.”