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Pendragon expands US car dealership operation

Pendragon, the UK's biggest car dealer, has bought a Lexus dealership in California, USA.

The $48.5 million deal (£32.6m) transfers the trade and certain assets of Lexus of Glendale from Texas Automobiles Leasing to Pendragon, which will continue to trade the business under the same name.

The gross assets to be acquired total $27.5m, including a freehold property valued at $25.5m. Total consideration, which includes $21.0m of goodwill, is estimated at $48.5m and will be settled in cash on completion from Pendragon's existing resources, subject to completion accounts and receipt of manufacturer agreements.

For the year ended 31 December 2014, the accounts of Lexus of Glendale showed a profit before tax of $2.6m.

Trevor Finn, Pendragon chief executive said: "The Lexus brand in the United States is one of the most desirable brands in the retail motor industry.  This dealership is a high quality business, with territories in the Los Angeles area encompassing Glendale, Pasadena and Burbank.

"This represents an attractive addition to our existing dealerships in California".

Pendragon already owns four Jaguar, four Land Rover and one Aston Martin dealerships in California.

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