10:12 am, July 11, 2013
VERTU Motors plc has announced the acquisition of two Volkswagen dealerships in Lincolnshire from Lookers plc.
The Gateshead-based firm, which now employs more than 150 staff at its Team Valley headquarters, has bought its first two Volkswagen dealerships for £3m.
This deal introduces the Volkswagen franchise to the Group’s portfolio and builds on its existing representation with Seat.
The assets acquired by the automotive retailer, which has a network of 97 sales and aftersales outlets across the UK, include a freehold property in Boston and a leasehold property in Lincoln, adjacent to its existing Honda dealerships.
In December 2012, the management accounts of the acquired businesses showed a turnover of £20.2m and operating profit before interest and taxation of £320,000.
In addition, the Group has also announced the opening of a new Seat dealership in Birmingham. The new branch, located at Star City, will extend the current sales territory of the Group from the existing Derby Seat dealership into the West Midlands, rounding the Group’s total number of Seat outlets up to five.
CEO of Vertu Motors, Robert Forrester said: ‘We are delighted to introduce the hugely respected Volkswagen franchise, which commands a UK market share of 8.75 per cent, into our manufacturer portfolio.
‘These two dealerships will trade as Vertu Volkswagen and are situated in locations which are familiar to us from other Group operations and build on our strong presence in the East Midlands.’
Forrester added: ‘We are also delighted to be opening a new Seat dealership in Birmingham, the city where Bristol Street Motors was founded 100 years ago this year. These developments deepen our relationship with the Volkswagen Group, which we consider to be a key strategic development in building a balanced portfolio.’
