11:41 am, November 30, 2022
Arnold Clark has pulled out of its deal to buy the dealer group Cars 2, the motor trade giant has confirmed today.
The UK’s most profitable car dealer group told Car Dealer it has stepped back from the deal to buy the Yorkshire based business.
In a statement, Eddie Hawthorne told Car Dealer: ‘Over the last month and a half, we have been in negotiation with view to purchase Cars2, but unfortunately we have been unable to agree terms to complete the deal.’
A briefing note from a car manufacturer represented by Cars 2 was sent out to dealers informing them the deal was off late yesterday.
Both parties remained tight lipped when questioned about the deal by Car Dealer when we exclusively broke the news of the rumoured buy-out at the beginning of November.
Staff at several Cars 2 dealerships told Car Dealer they had been informed a deal was being done when Car Dealer called to ask if the rumours were true.
However, neither parties commented at the time.
The admission from Hawthorne that a deal was in play all along could mean the UK’s most successful dealer group is likely to be on the hunt for acquisitions elsewhere.
Cars 2 is a new and used car dealership group predominantly based in Yorkshire.
It represents Hyundai, Seat, Nissan, Renault, Dacia, Fiat, Abarth and MG in Wakefield, Bradford, Barnsley and Huddersfield.
A source told Car Dealer: ‘The deal is off. A car manufacturer has briefed its dealers that it’s not happening and that Cars 2 remains.
‘It always seemed like a strange fit to me that business with Arnold Clark, but then you never know what’s going to happen in this industry.’
Cars 2 started as an independent, family-run business with a single dealership in Barnsley.
It also runs the Pure Cars used brand which sells luxury cars.
In its latest accounts for the year ending December 31, 2021, Cars 2 saw car sales turnover increase 67 per cent to £124m (2020: £76m).
Profit for the year was £5.8m, up from £2.3m the year before.
The deal would have come at a time of consolidation for the motor trade with lots of businesses selling up.
Part of Helston Garages was acquired by Yeomans today with Vertu and Rybrook also putting finishing touches to the deal to acquire other parts of the same group.
