Pendragon, the UK's largest car dealership group, has announced the acquisition of Hornburg, the prestigious Jaguar and Land Rover dealership in Los Angeles.
This is Pendragon's second acquisition of a US Jaguar franchise within a year and represents the addition of Land Rover to its US portfolio. The cash consideration is £9.01 million, and the value of the net assets acquired is £4.5million.
Hornburg, a family-owned business, is the fourth largest Jaguar dealer in the USA occupying high profile locations in Beverley Hills and Santa Monica, California, operating both Land Rover and Jaguar franchises from its four leasehold sites.
In the financial year to 31 December 2000, the business made operating profits of £1.43 million ($2.1 million) on a turnover of £65.6 million ($94.0 million). Net assets were £4.9 million ($7.1 million).
This acquisition further strengthens Pendragon's worldwide operating relationship with Jaguar, coming just nine months after Pendragon's acquisition of Bauer Jaguar, the third largest Jaguar dealer in the US, announced in July 2000. Pendragon is already Jaguar's largest partner in the UK and Germany.
Trevor Finn, chief executive of Pendragon, said: “Today's acquisition is another example of where Pendragon has used the capital raised through the disposal of underperforming and non-core businesses to diversify the portfolio overseas.
"It represents a further opportunity to pursue our strategy of 'bigger with fewer' by strengthening our ties with Jaguar on a global scale, while increasing our exposure to the lucrative US market."