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Citigate management completes buy-out

Volkswagen retail specialists Citygate has completed a management buy-out from parent company HR Owen.

The business has been under the HR Owen umbrella since 1993.

HR Owen divisional director Jonathan Smith and finance director David Ho have led the buy-out of the renamed Citygate Automotive Limited.

As at December 31, 2004 the business had gross assets of £16.2m and net assets of £8.1m.

The consideration for the business will consist of £1.0m goodwill and about £1.4m of fixed assets together with the net book value of stocks at completion.

Citygate employs 330 staff across five Volkswagen retail operations in Ruislip, Colindale, Watford, Chalfont and High Wycombe and one Volkswagen van centre in Colindale.

The combined operation sells in excess of 7,000 new and used vehicles each year and generates over £80 million in turnover.

Citygate managing director Jonathan Smith said: "Our success is built on the very highest levels of service and we aim to continue providing that. At Citygate we have strived to create the culture of a local, family-run business and many of our customers and staff have been with us for many years.

"The opportunity that a market area the size of Citygate presents with the Volkswagen brand is immense and we are looking forward to further developing this.

"In many ways it is business as usual, but with many new models due to arrive shortly entering previously unrepresented market segments, there are also very exciting times ahead."

In addition to sales of some 7,000 cars and vans, the group also operates 75 workshop bays and a Volkswagen approved bodyshop.

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