Sytner given investment for growth and acquisitions

Sytner given investment for "growth and acquisitions"

22/12/2011 in News, All News, Dealer News

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Sytner's owner Penske Automotive Group has gained a £110 million credit facility from the Royal Bank of Scotland and BMW Financial Services, that the US company says, will be used in the UK to fund growth.

David K. Jones, executive vice president and chief financial officer for Penske Automotive Group, said: "The new credit facility will be used for working capital, acquisitions, capital expenditures, investments and general corporate purposes and replaces an existing £102 million credit facility with the Royal Bank of Scotland that was scheduled to mature in November 2013.”

“The new credit facility in the UK provides sufficient capital to support continued growth and flexibility in the UK and demonstrates the confidence of our financial partners in the business model.”

Penske Automotive Group, based in Michigan, operates 321 retail automotive franchises, representing 42 different brands and 28 crash repair centers in the US, Germany, UK and Puerto Rico.

Since 2002 Sytner has been owned by the Penske.

Penske has 172 franchises in the US and Puerto Rico and 155 internationally, mostly in the UK.

Author
Jeremy Bennett
01733 468261


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Sytner Group

Sytner Group was founded in the 1968 in Nottingham by Frank Sytner and his brother Alan, owner of the famous Cavern Club, selling BMWs and specialist used cars. It continues to focus on retailing prestige and specialist new and used cars.

Expansion began in 1993 with the acquisition of two Midlands-based BMW businesses and over the next three years other prestige marques were added to the portfolio - Mercedes Benz, Ferrari, Audi, Land Rover, Chrysler Jeep and Porsche. In 1997, the company was floated on the stock market.

In 1998 a family-owned Jaguar and Land Rover business in Thames Ditton was purchased from Guy Salmon. Salmon had built a successful business based on providing outstanding customer service and today all Sytner Jaguar and Land Rover businesses bear his name.

The largest single acquisition in Sytner’s history was made in August 1999.

The purchase of Ixion Group almost almost doubled the number of dealerships in the group and saw the addition of new brands Saab, Volvo and Lexus.

Since then Toyota has been added.

In 2002 agreement was reached for the purchase of Sytner by the US’s second largest car retail group Penske Automotive.

In 2004 two multi-dealership acquisitions were made: Aston Green Ltd and Glenvarigill Ltd. Aston Green more than doubled the number of Audi dealerships in the group with a cluster of locations including in the South. Glenvarigill enabled Sytner to expand north of the border into Scotland with additions to the specialist division including Bentley, Ferrari and Maserati.

In 2006 the William Jacks Group Plc, consisting of 15 franchises representing BMW, Honda, Jaguar, Land Rover, MINI, Rolls-Royce and Volvo was acquired and expansion continued with Chrysler Jeep in Bristol acquired from the Dick LovettGroup.

In 2007, acquisition continued with the purchase of nine Ryland businesses; these included the DaimlerChrysler dealerships in the North East together with the BMW and Mini dealerships in the west Midlands and South West.

Later in 2007 Sytner added to the year’s acquisitions with the Nottingham and Leicester Audi Businesses, previously owned by the John Fox Group plus the exciting acquisition of the historical Maranello Egham, further adding to Sytner's Ferrari and Maserati portfolio.

In late 2008 Sytner once again brought VW under their banner and also introduced Seat through the acquisition of the Richard Alexander Group.

Alongside corporate growth has been a determination to ensure the satisfaction and growing capabilities of its staff with the belief that satisfied staff leads to satisfied customers.

Staff are given a voice through the bi-annual ‘viewpoint’ survey, dealer principals’ forum and managers’ conferences.

Sytner has twice been named in the Sunday Times Best Companies to Work For list along with winning Automotive Management’s ‘Employer of the Year’ award in 2008.

Since 2002 Sytner has been owned by the Penske Automotive Group, based in Michigan USA.

It has 172 franchises in the US and Puerto Rico and 155 internationally, mostly in the UK.

In December 2011 Penske secured a £110 million credit facility from the Royal Bank of Scotland and BMW Financial Services to fund growth.

A month later, Sytner acquired, for an undisclosed sum, the Isaac Agnew Group, reinforcing its Northern Ireland operation with the purchase of 16 dealerships.

The acquisition was a share purchase and the dealerships operate as an autonomous division of Sytner Group and trade under their existing dealership names.

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