Vertu snaps up Midlands company in £9.2m deal
NORTH East motor retailer Vertu has snapped up a Leicestershire company in a £9.2m deal.
The Team Valley firm, which now has a network of 156 sales outlets across the UK under the Bristol Street Motors, Vertu Motors and Macklin Motors banners, has acquired the entire issued share capital of Farmer & Carlisle Holdings Limited.
The long-established business operates two Toyota franchise dealerships in Loughborough, where its head office is based, and Leicester.
The share capital was acquired for cash consideration of £9.2m, including £900,000 cash acquired and subject to finalising completion accounts, and has been funded from the group’s existing cash resources.
The business includes two freehold dealership properties, which have been included in the purchase consideration at a value of £6m. The deal includes a goodwill payment of £2.35m.
Last year the business posted revenues of £29.2m and a statutory pretax profit of £600,000. The acquisition is expected to be earnings enhancing for the year ending February 28, 2023.
The group’s systems and processes will be implemented immediately and the business will be branded Vertu, reflecting the continued growth of the Vertu brand in the UK. The new business will also be supported by the group’s growing website vertumotors.com.
The acquisition increases the group’s representation of the Toyota brand to a total of three locations across the East Midlands. Following the deal Vertu represents 13 manufacturer partners across 39 sales outlets in the East Midlands.
Robert Forrester, CEO of Vertu Motors said: “We are delighted to announce the group’s expansion with the much sought-after Toyota franchise.
“The addition of more Toyota sales outlets to the group’s portfolio has long been a strategic objective of the group since we envisage the brand gaining market share in the medium-term and being well positioned to take advantage of opportunities as the wider automotive sector evolves.”
Last week Vertu hiked up its profit guidance again after seeing a boost in new vehicle supply.
New car supply has foundered due to the global chip shortages, giving a huge boost to the used vehicle market resulting in record vehicle pricing levels. But Vertu said that October and November saw an improvement in the new car market. As a result, it now expects profits for the year to be at least £70m, a significant increase on the original estimates of £28m to £32m.