3:20 am, August 3, 2011
H.R. Owen has announced it has acquired the entire issued share capital of Broughtons of Cheltenham Limited.
The luxury car retailer has acquired the business from its current shareholders, SP Broughton & Co Limited and Mr J Newcombe.
Broughtons of Cheltenham Limited operates three Bentley franchises, in Cheltenham, Pangbourne and Byfleet as well as an Aston Martin franchise and an Audi aftersales operation in Cheltenham.
The total consideration for the business is estimated to be £1.5m, including a payment for the goodwill of £1.1m. In addition, H.R Owen will settle a group loan due from the business of £1.3m and assume the bank overdraft.
At December 31, 2009, the business had gross assets of £14m, and in the year to December 2009 it had a turnover of £45m and generated a marginal loss of £13k before tax.
In 2010, the business has increased turnover by more than 25 per cent and is expected to have made a convincing return to profit. The acquisition is expected to be significantly earnings enhancing for H.R. Owen from 2012 onwards.
Chief executive, Andy Duncan, said: ‘This important acquisition is a key step in implementing H.R. Owen’s strategy for growth as outlined in May. The new Bentley businesses will extend our position with one of our principal existing marques, whilst the arrival of Aston Martin broadens our offering and is a very welcome addition to our portfolio.
‘The acquisition helps us to offer our customers the very best luxury car experience in the world, in line with our ‘Experience is Everything’ strategy as well as helping to drive growth for the business and additional value for our shareholders.’
Bill Donnelly, director of Aston Martin said: ‘I am delighted that we are forging a new partnership with H. R. Owen; a retailer with a long and well deserved reputation for excellence.’
