AM Online

Reg Vardy acquires five Priory dealerships

Reg Vardy has today exchanged contracts worth approximately £15.5m with the Priory Motor Group for the acquisition of five dealerships.

The acquisition comprises a BMW and a Mini dealership in North Tyneside; Vauxhall dealerships in Blaydon and Gateshead; and a dual franchised Kia and Chevrolet dealership in Gateshead. In addition, a stand alone bodyshop in Newcastle has also been acquired.

This acquisition expands the BMW dealerships held by the Reg Vardy group from two to three and increases the number of Vauxhall businesses from 13 to 15. The dual Kia and Chevrolet dealership in Gateshead is Reg Vardy’s first into the respective franchises.

Reg Vardy now holds 98 dealerships.

Based on unaudited accounts for the year to January 8 2005, the acquired businesses reported a turnover of £61.6m, profit before tax of £1.1m and net assets of £9.4m.

The acquisition is expected to complete on July 18.

Sir Peter Vardy, Reg Vardy chief executive, says: “This is a significant acquisition for the group.

The BMW and Vauxhall dealerships represent a further strengthening of our manufacturer relationships in these prime franchises. The franchise expansion gives us the opportunity for future growth and we hope to make further announcements with regards to additional Kia representation in the near future.”

Bill Oliver, managing director of Priory Motor Group, says: "There have been colossal changes within the sector over the past two years and to compete effectively size has become increasingly important. We estimate that we would need to treble the size of our business to achieve long-term success. It is therefore in the best interests of our staff and customers in the North East to join one of the biggest groups in the UK motor trade."

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.