Cambria Automobiles has demonstrated its intention to grow its ‘portfolio of premium and high luxury franchises’ with the acquisition of the Land Rover franchise in Welwyn Garden City.
The Hertfordshire dealership was purchased from Jardine Motors Group for a total cash consideration of £10.8 million and enhances Cambria’s presence in the area, being just two miles from the Group's Jaguar and Aston Martin franchises on Great North Road, Welwyn Garden City.
Cambria also announced that it has signed Heads of Terms to dispose of its Grange Jaguar franchise in Exeter to Helston Garages Limited and will be disposing of its Aston Martin boutique at the same site.
A statement issued via the London Stock Exchange revealed that consideration for the disposal is expected to be in the region of £1.3 million (subject to final adjustment and preparation of completion accounts) and includes £1.2 million for Goodwill.
Mark Lavery, Chief Executive Officer of Cambria, said: "We are pleased to have acquired this Land Rover franchise in Welwyn Garden City, which complements the Group's Jaguar and Aston Martin site nearby.
“The acquisition represents further delivery of our strategy to develop our portfolio of premium and high luxury franchises, while acquiring immediately earnings enhancing businesses.
"The disposal of our Jaguar franchise in Exeter is in line with the Group's reorganisation to ensure compliance with Jaguar Land Rover's network strategy.
“The closure of our Aston Martin boutique is in line with Aston Martin's network restructuring and we remain excited about the potential to continue to develop our partnership with Aston Martin in the short to medium term."
AM understands that that the £10.8 million acquisition of the Welwyn Garden City Land Rover is made up of £0.1 million for fixed assets, with the remaining £0.7 million for used vehicles, parts stock and apportionments.
Cambria now operates three Land Rover dealerships under the Grange trading name.
The acquired dealerships' management accounts for the year ended 31 December 2015 show unaudited revenue of £54 million and Cambria estimates the profit before tax for the same period was £2.5 million.