AM100 (16) dealer group, European Motor Holdings (EMH) has acquired Smith Knight Fay (number 36), a privately owned motor retail business operating 18 motor retail franchises in the north west, for approximately £29.8m.

EMH said the acquisition was to increase its presence in the north west where the group already has a number of established businesses.

Richard Palmer, EMH chief executive, says: "It gives the right geographical, franchise and operational mix to fulfil our stated strategy.

“The enlarged group will have many opportunities to achieve improvements from management synergy and economies of scale in the years to come."

The acquisition is conditional upon the approval of shareholders and the Financial Services Authority (FSA).

EMH now takes over SKF dealerships in Bolton, Chester, Macclesfield, Stockport, Denton, Altrincham, Bury, Hyde, Manchester and Oldham with franchises including Audi, Lexus, Mazda, Toyota and Volkswagen.