Gateshead-based Vertu Motors plc announced it has expanded its partnership with BMW Group to become the largest BMW Motorrad motorcycle retailer in the UK.
Vertu has acquired the business and assets of two BMW Motorrad outlets in Yorkshire.
The business has been acquired from Saltaire Motor Company Limited, which trades as Allan Jefferies.
The outlets purchased are located in Shipley, near Bradford, and Rotherham.
The business will be rebranded to trade under the Vertu brand and will become part of the Vertu Motorcycles division, which will operate six motorcycle outlets across Motorrad and Honda.
Vertu shares rose about 5%.
“For the year ended 29 September 2021, the business achieved revenue of £20.5m and an operating profit of £463,000,” said Vertu.
“Total consideration is estimated at £4.2m, subject to finalisation of completion accounts.
“The consideration includes a freehold property value of £1.85m and a payment in respect of goodwill of £0.5m.
“This consideration will be paid from the group’s existing cash resources. Due to the seasonality of motorcycle sales, the business is expected to contribute a small loss for the remaining four months of the financial year and is expected to be earnings enhancing in its first full year of ownership.”
BMW Motorrad is the motorcycles brand of BMW Group.
In the full year 2021, it was the UK market leader in the “big bikes” category with a 16.6% market share.
Vertu currently operates one Motorrad outlet in Sunderland which it acquired in 2020, and adding the acquired two further outlets will make Vertu the largest partner in the UK for BMW Motorrad.
Vertu Motors CEO Robert Forrester said: “Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically to the group.
“Vertu becomes the largest partner in the UK for BMW Motorrad.”
Paulo Alves, Head of BMW Motorrad UK and Ireland, said: “We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu.
“The Jefferies family have built a fantastic operation and we are confident that the business will be in good hands.
“As a leading brand, our customers take priority and we share this philosophy with Vertu. We welcome them as our largest partner in the UK.”