Gateshead-based Vertu Motors plc said it has bought Burrows Motor Company Limited to extend its sales network. 

Vertu, which already has a network of 202 sales and aftersales outlets across the UK said the purchase, for an undisclosed sum, was funded by existing cash and borrowing facilities. It said it expected the deal to be earnings enhancing in first full year of ownership.

Burrows is a family-owned group of dealerships operating five Toyota dealerships, two Mazda dealerships and one Kia dealership. The acquisition increases Vertu’s brand presence in Yorkshire and Nottinghamshire adding outlets in Barnsley, Doncaster, Rotherham, Sheffield, York and Worksop.  

It said all outlets will be rebranded Vertu in line with its recently announced brand strategy and integrated into the Vertu systems platform in the coming weeks.

Due to the seasonality of vehicle sales, the business is expected to contribute a loss for the remaining four months of the financial year to 28 February 2025 and is expected to be earnings enhancing in its first full year of ownership.

Robert Forrester, CEO of Vertu Motors, said: “We have long admired the Burrows business and are delighted to have completed this acquisition creating further scale for the Group with key Manufacturer Partners.  The acquisition of Burrows gives us considerable scale in our partnership with Toyota and strengthens the Vertu brand in Yorkshire and Nottinghamshire. This is in line with our strategy to actively pursue value accretive growth opportunities to enhance our portfolio, applying strict investment return metrics as well as returning cash to shareholders.”