The acquired businesses comprise Land Rover dealerships operating from leasehold properties in Mission Viejo and Newport Beach. The combined unaudited operating profit of the businesses for the twelve month period to 31 December 2002 was $2.8 million on turnover of $62.6 million.
Net assets of the acquired businesses are approximately $3.2 million.
The total consideration for the acquisition is $13.7 million of which $10.5 million represents goodwill. The Mission Viejo business has been acquired from Kensington Enterprises Inc and the Newport Beach business from Newport Enterprises Inc.
Pendragon chief executive Trevor Finn says: “The expansion of Pendragon's business in the USA has proved very successful. The new Land Rover dealerships, which are located in an extremely affluent territory in Southern California, will add to this success.
“We will continue to look for opportunities for further investment in the USA.”