Vertu has acquired a Jaguar dealership in Leeds from Inchcape Retail.
Total consideration, which includes £500,000 of goodwill, is estimated at £650,000 and will be settled in cash from the dealer group’s existing resources.
Robert Forrester, Vertu chief executive, said: “Leeds Jaguar will complement our award-winning Land Rover operation in Leeds and will strengthen our Farnell brand in the North.
“The Jaguar brand is set for significant expansion given the fantastic new models that are being launched, such as the F-Pace. The Jaguar line-up is now more extensive than in its entire history.”
Vertu described the site, which will trade under its Farnell brand, as a “high quality business with potential for earnings growth as brand develops”.
It further developments the group’s representation of Jaguar in the North of England combining Jaguar and Land Rover operations in the Leeds territory.
It also provides an opportunity for marketing and management synergies as the acquired business operates under the Farnell brand and management structure.
The business will operate from its current premises in the short term and will then relocate to a newly developed site next to Vertu’s existing Leeds Land Rover operation in Hunslet Road.
For the year ended December 31, 2015, the management accounts of the business showed that it broke even in the period.
Vertu expects this acquisition to be earnings neutral in the current financial year and earnings enhancing thereafter.
Following completion of the deal Vertu will operate five Land Rover dealerships and three Jaguar dealerships.