Manchester-based Lookers has secured an extension to its banking facilities which it says will help it continue its "acquisition led strategy".
The £115m tailored facility has been provided by a banking consortium led by Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB), with Barclays Corporate, Handelsbanken Capital Markets, Svenska Handelsbanken AB (publ), HSBC, Lloyds Bank Corporate Markets, Yorkshire Bank and RBS as Joint Mandated Lead Arrangers. The banks were advised by Amanda Gray and Richard Oman of Addleshaws Manchester office.
Lookers’ motor division consists of 119 franchise dealerships across the UK, representing 33 car marques across 71 sites, and it also owns independent parts division which includes FPS.
Robin Gregson, finance director at Lookers, said: “Lookers is confident that we can continue to grow the business, deliver satisfactory financial results and use our balance sheet strength to pursue strategic growth opportunities as and when they arise.
“We benefit from working with a banking group that understands and supports our business and the new funding facilities provided by the RBS led syndicate will give us the financial flexibility to develop the company even further.”
Lookers acquired Get Motoring UK, which trades as Vehicle Rental Services (VRS) in March this year.
The group has identified the car parts business as a key growth target and the new financing contains a flexible £30m ‘accordion’ component that Lookers’ management can access if strategic acquisition opportunities arise in either the motor or parts divisions.
Lookers has seen new car retail sales rise by 5.4%, used car volumes up 5% on a like-for-like basis and its parts division delivered a “record trading performance” in the first six months of 2011.