Gateshead-based Vertu Motors plc on Thursday announced it has acquired Cornwall-based Helston Garages Group Ltd – a predominantly premium manufacturer automotive retail group.
The deal adds Volvo and Ferrari to the Vertu portfolio
The Gateshead car dealership said it purchased 28 franchised sales outlets, adding significant coverage to the company’s existing 160 outlets, for a total consideration of £117 million.
Vertu Motors shares rose about 4.5%.
The purchase increases Vertu’s reach in the South West of England, increasing its sales outlets in the region to 32, up from the current four.
Vertu Motors said the acquisition was financed through a combination of renegotiated and new debt facilities.
“We are delighted that Vertu Motors has agreed to acquire Helston and 28 dealerships, further evidence of the execution of our long-term strategy to build scale, geographic coverage and deepen our relationships with our key automotive manufacturers,” said Vertu CEO Robert Forrester.
Vertu Motors’ key partners are BMW, MINI, Stellantis and Jaguar Land Rover, from whom the company “received strong report for the transaction.”
“We are particularly pleased that we have received strong support for the acquisition from our manufacturer partners and our lending banks to support the deal,” said Forrester.
“Volvo and Ferrari are introduced to our portfolio, which is a very proud moment for the group.”
Vertu Motors said that the acquired dealerships generated revenues of £498.9 million in 2021.
Reporter: Harvey Dorset
Copyright 2022 Alliance News Ltd. All Rights Reserved.