2:07 pm, August 11, 2016
LOOKERS PLC has announced that it is to sell its parts division as part of a plan to expand its dealership operations.
Pending shareholder approval and regulatory approval from the European Union, the group has entered into a contract to sell FPS, Apec Braking and BTN Turbo to Alliance Automotive Group, a large European aftermarket business, backed by global private equity business Blackstone since 2014.
AAG has offered £120m for the Lookers’ Parts Division, and will add the branches to the more than 500 outlets it already operates in the UK.
While Lookers had intended to grow the parts business in line with the growth of its Motor Division, it has been hindered by the lack of suitable acquisition opportunities. The sale will be used to fund the acquisition of more dealerships in the UK, to expand Lookers brand coverage and geographical footprint.
Andy Bruce, Lookers chief executive, said: ‘This transaction will significantly strengthen our ability to accelerate the growth in our core car dealership business whilst opening new opportunities to our colleagues and I look forward to sharing the benefits of this with my colleagues across Lookers in the future.
‘In fact we are already at an advanced stage of negotiation to acquire two dealership groups who represent premium brands and we anticipate making announcements on these in the coming weeks.
‘I would like to take this opportunity to thank all of our colleagues in the Parts Division for their hard work over the years. Since acquiring FPS in 2004, and subsequently Apec and BTN, the business has made an invaluable contribution to our company.’
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