Cambria Automobiles has paid £7.56 million to acquire a Land Rover car dealership in Royal Wotton Basset, Swindon, from TH White.
It is Cambria's second Land Rover business, and the new operation will be relocated within two years to alongside its existing Swindon Grange Jaguar business in Swindon, into a combined dealership in line with Jaguar Land Rover's current showroom style.
The consideration for the acquisition comprises £2.25 million for the freehold property, £3.0 million of goodwill, £0.07 million for fixed assets, with the remaining £2.24 million for used and demonstrator vehicles, parts stock and apportionments.
The acquired dealerships' management accounts for the year ended 31 December 2014 show revenue of £32 million and Cambria estimates the profit before tax for the same period was £0.7 million. It is anticipated that this acquisition will be immediately earnings enhancing, Cambria said.
Cambria Automobiles chief executive Mark Lavery (pictured) said: "The acquisition of the Land Rover dealership in Swindon aligns perfectly with our stated strategy to develop our portfolio of premium and high luxury franchises. The Swindon territory is well known to us with the Cambria Group established in the town following its first acquisition in 2006.
"The Land Rover franchise continues to perform well, and we are pleased to be able to develop our Jaguar Land Rover relationship further with this exciting acquisition. TH White Land Rover was a family business, and we are looking forward to the opportunity to further enhance its performance under Cambria ownership."
Cambria now operates a total of 29 dealerships representing 46 franchises and 18 brands across the UK.
David Kendrick, partner at UHY Hacker Young, advised on the transaction. He said: “We have seen a lot of change in the JLR network recently and it was a pleasure to assist the shareholders of TH White with the sale of their Landrover dealership. The fit for Cambira works very well as it already has Jaguar in that territory and will no doubt build a new facility for both brands moving forward.
"We continue to see a lot of movement within premium franchises and expect this to continue moving forward.”