Vertu Motors has acquired another business to its network of dealerships after buying a Vauxhall dealership in Keighley.
As part of the transaction Vertu has acquired a 15 year lease on the dealership property. The total estimated consideration is £1.1m, including £0.1m of goodwill. The consideration will be settled in cash from the existing resources of the group.
The business had been operated by Walter C Brigg. For the year ended September 30, 2012 the statutory accounts of the acquired business showed a turnover of £8.2m and an operating profit of £0.1m.
This latest acquisition follows on from its addition of Vauxhall and Seat in Carlisle last week and a Vauxhall site from Nidd Vale towards the end of 2012.
Robert Forrester, CEO of Vertu Motors, said: “2013 has started with two acquisitions for the Group following on from a very strong period of growth in 2012.
“The acquired Keighley business increases the number of outlets in Yorkshire to six as we seek to grow scale in the region. Our newly acquired businesses will be integrated into the Vertu business to drive increased profitability and to generate shareholder value.”
Vertu now has 14 Vauxhall outlets across the group of 93.
Mike Allen, Panmure Gordon executive director for equity research, support services, said: "Vertu has announced its second transaction of 2013, this time Walter C Brigg comprising a Vauxhall outlet in Keighley, Yorkshire.
"Consistent with what we have seen in other transactions this is a well-established business that will add scale in a geographic area of strength for the company (a Vauxhall dealership in nearby Harrogate was recently acquired). Vertu will now have 14 Vauxhall outlets across the UK making it a leading national retailer with a key brand."