Perry Group's motor division has been sold for £25.9m to two members of its management team who have created a new company called Pearlglass.
The two are Paul Millard and Ken Savage, who are joint mds of the new business.
The division is one of the UK's larger franchised motor vehicle dealership networks, principally representing Peugeot, Vauxhall, Fiat/Alfa Romeo and Hyundai among a total of 14 franchises.
The division consists of 28 franchised points and seven satellites at 22 locations.
Perry's management board took the decision to sell due to disappointing financial returns and a wish to concentrate on crash repair and parts businesses.
Richard Allan, Perry Group chairman, said: “The board is convinced the sale of the motor division to Pearlglass will provide the desired withdrawal from franchised motor vehicle dealerships at an acceptable cost, will improve the ongoing group's risk profile and will enable the ongoing group to focus on the development of its body repair chain, Nationwide and PDS, the parts distribution business.
For the year ended December 31, 1999 Perry's motor division had sales totalling £236.2m and operating profit of £2.8m. While results for the 2000 year are not available the group has warned that operating profit will be “significantly below that of last year” – and below market expectations.
Mr Millard said: "We are absolutely delighted to have purchased one of the best-known names in the retail motor business. Perrys Motor Sales has an excellent portfolio of franchised dealerships with an enviable reputation for customer care.
"All the manufacturers represented have expressed ongoing support and this, together with the commitment of our workforce will ensure a successful future for all."