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Vertu buys two dealerships from Lookers

Vertu Motors has exchanged contracts to buy two Nissan dealerships from Lookers.

The Cheshire dealerships are both dual franchised, located in Altrincham (Renault and Nissan) and Macclesfield (Renault and Ford) in leasehold properties.

The latter is next to Vertu’s recently acquired Vauxhall dealership. 

The maximum consideration payable is £3.9 million in cash.

No goodwill is payable on this acquisition and completion is expected to take place on October 4.

Robert Forrester, CEO of Vertu Motors, said the deal demonstrates continued delivery of its strategy to grow a scaled motor retail group across the country in targeted regions.

“We are excited by the opportunities this acquisition brings with our manufacturer partners Renault and Ford, and we are particularly pleased to acquire our first Nissan dealership.

"The Nissan brand is going from strength to strength through a fantastic range of innovative vehicles, and a focus on delivering outstanding customer experience.

"These Cheshire dealerships are in prime retail locations representing an excellent geographic fit with the group’s existing north west dealerships.”

In the year ended June 30, 2009, the management accounts of the acquired businesses showed a turnover of £22.5m and a small operating loss.

 

The dealerships are expected to be earnings enhancing in the year to February 2012.

On completion of the deal Vertu will have five Renault and 20 Ford sales outlets.

The acquisition brings the Nissan franchise to the group for the first time. 

Vertu will operate 74 sales outlets on completion, comprising 70 franchised sales outlets, four non-franchised sales operations and two stand-alone service operations from 61 locations. The group says it will continue to acquire motor retail operations to grow a scaled dealership group.

Vertu will announce its results for the half-year ended August 31, 2010 on October 18.

 

 

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