8:03 am, November 1, 2022
Car dealer group Vertu has completed a multi-million-pound deal to buy motorcycle retailer Allan Jefferies.
The Car Dealer Top 100 outfit confirmed the news in a statement to the London Stock Exchange this morning (Tuesday).
It has acquired the business and assets of two BMW Motorrad outlets in Yorkshire from Saltaire Motor Company.
The two sites currently trade as Allan Jefferies and have been in the same family for four generations, dating all the way back to 1901.
The firm has represented BMW since 1971 and the latest deal makes Vertu the largest BMW Motorrad motorcycle retailer in the UK.
The outlets purchased are located in Shipley, near Bradford, and Rotherham and will be renamed to trade under the Vertu brand.
They will then become part of the Vertu Motorcycles division, which will operate six motorcycle outlets representing BMW Motorrad and Honda.
For the year ended 29 September 2021, the two dealerships achieved revenue of £20.5m and an operating profit of £463,000.
Total consideration is estimated at £4.2m, subject to finalisation of completion accounts, including a freehold property value of £1.85m and a payment in respect of goodwill of £500k.
Due to the seasonality of motorcycle sales, Vertu expects its new acquisitions to make a small loss between now and the end of the current financial year.
Robert Forrester, CEO of Vertu Motors, said: ‘Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically to the Group. Vertu becomes the largest partner in the UK for BMW Motorrad.’
Paulo Alves, head of BMW Motorrad UK and Ireland, added: ‘We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu.
‘The Jefferies family have built a fantastic operation and we are confident that the business will be in good hands.
‘As a leading brand, our customers take priority and we share this philosophy with Vertu. We welcome them as our largest partner in the UK.’
In October, Forrester told Car Dealer he wants to catapult his group to become one of the top three biggest in the UK with 400 dealerships to its name.
The Vertu boss spoke to Car Dealer Live, which you can watch below, in a wide ranging interview following release of the group’s first half year results.
Vertu posted profit of £28.2m on revenue of nearly £2bn for the first half of 2022.
