Vertu Motors has bought more Jaguar and Land Rover car dealerships in the north of England from Pendragon and Jardine Motors.
The car dealer has taken over Lancaster Jaguar in Bradford from Jardine Motors in an £0.9 million deal, including £0.75m goodwill, and Bury Land Rover from Pendragon at a cost of £7.0m, including £7.0m goodwill.
The acquisitions will complement Vertu Motors existing Farnell Land Rover dealership in Bradford and its Bolton-based Farnell Jaguar showroom, in line with Jaguar Land Rover's steady transition towards having franchisees operating both franchises within the same market area.
Vertu Motors now has five Land Rover dealerships and two Jaguar dealerships.
Vertu Motors chief executive Robert Forrester said: "Since 2013, the board has considered it strategically important to balance the group's representation of volume franchises, with increased exposure to premium franchises. Today's announcement is a further step along this path with further extensions of our Farnell Land Rover and Jaguar brand."
"Bury Land Rover is an earnings enhancing acquisition that will further support the profit growth of the group in the short and medium term. Bradford Jaguar will complement our successful Land Rover operation in Bradford and will strengthen our Farnell brand in the North."
Marketing and management synergies
The 2014 management accounts of the Bradford Jaguar business showed revenues of £14.7m and a loss of £0.15m, and Vertu expects this acquisition to be earnings neutral in the current financial year and earnings enhancing thereafter.
Bury Land Rover, in contrast, recorded revenue of £41m and EBITDA of £1.5m.
Vertu said both businesses bring opportunities for marketing and management synergies as they will operate under its Farnell brand and management structure.
“This acquisition represents a strong Land Rover opportunity that Vertu has added to its portfolio enabling it to extend its territory in the North,” said Paul Daly, partner at UHY Hacker Young which advised on the transaction.