Cazoo buys West van dealership in £6.5m deal
ABRISTOL-BASED van dealership has been acquired by Cazoo in a deal worth £6.5m as the online car retailer moves to add commercial vehicles to its offering.
Independent online retailer Vans365, based on Staunton Lane in Whitchurch, will become part of the New York-listed Cazoo group subject to approval from the Financial Conduct Authority, which is anticipated in the coming weeks.
Vans365’s revenues for 2021 have been forecast to be around £14m with an EBITDA margin of about 9%. Cazoo said its acquisition of the business was expected to have a “negligible impact” on its own operating results for the 2021 financial year.
Vans365 buys and sells used vans and its new owners plan to utilise the company’s expertise and relationships in the commercial vehicle market, including its in-house technicians and customer service specialists, where it plans to launch by the end of the year.
Fast-growing Cazoo, which was founded by its chief executive Alex Chesterman in 2018, has sold more than 40,000 cars online since its launch, and recently opened its first customer centre in Manchester as part of a planned 15 across the UK.
Mr Chesterman said: “The market for commercial vehicles is worth £16bn annually, with over one million vans sold each year in the UK, which expands our addressable market and is a natural product extension for us.
“The acquisition of Vans365 will accelerate our planned launch of buying and selling commercial vehicles online later this year and will enhance both our customer proposition and team and I look forward to welcoming the Vans365 team to Cazoo.”
Jordan Franklin, managing director of Vans365, added: “Like Cazoo, customer obsession is at the heart of Vans365’s success and we’re delighted to be joining the Cazoo team to take our online proposition to the next level.
“We have built strong supply relationships and achieved excellent customer feedback with a great team who have strong sector expertise and are looking forward to joining forces with Cazoo.”
Internet entrepreneur Mr Chesterman previously co-founded property website Zoopla and ScreenSelect, one of the companies that merged to form the DVD-by-mail service LoveFilm.
Cazoo is the shirt sponsor of Premier League football clubs Aston Villa and Everton for the 2021/22 season.