8:32 am, October 29, 2024
Vertu Motors has acquired Doncaster-based and family-run Burrows Motor Company.
Released via the London Stock Exchange this morning, the announcement said the acquisition gives Vertu ‘considerable scale’ with its Toyota relationship, and that Burrows operates a ‘well invested, freehold rich property portfolio’.
Consideration is estimated at £12.5m with £1m deferred for 12 months. It includes £17.6m in respect of freehold properties and a goodwill payment of £4m. Vertu will take on Burrows’ £10.5m debts, compromising freehold property mortgage funding and used car stocking loans.
The deal sees Vertu add five Toyota dealerships to its network, along with two Mazda showrooms and one Kia dealership, taking Vertu’s portfolio to 11 Toyota sites, four Mazda sites and four Kia dealerships.
The Burrows dealerships are located in Barnsley, Doncaster, Rotherham, Sheffield, York and Worksop, growing Vertu’s presence in Barnsley by two sites, and three in Sheffield.
Last year, Burrows clocked up an operating profit of £1.4m on revenue of £168.9m. Vertu expects the family-run firm to notch up a loss for the remaining quarter of 2024, and to be ‘earnings enhancing’ in the first full year of ownership.
Delighted to announce the acquisition of the Burrows Motor Company operating in Yorkshire and Nottingham. I would like to thank Steve Burrows and his team for a great transaction process.
— Robert Forrester (@vertumotorsCEO) October 29, 2024
The dealerships will be rebranded to Vertu, in line with the listed dealer group’s announcement that all of this showrooms will adopt the Vertu name by April of 2025, axing the historic Bristol Street Motors and Macklin brands.
Commenting on the Burrows deal, Vertu Motors CEO Robert Forrester (pictured) said: ‘We have long admired the Burrows business and are delighted to have completed this acquisition creating further scale for the group with key manufacturer partners.
‘The acquisition of Burrows gives us considerable scale in our partnership with Toyota and strengthens the Vertu brand in Yorkshire and Nottinghamshire. This is in line with our strategy to actively pursue value accretive growth opportunities to enhance our portfolio, applying strict investment return metrics as well as returning cash to shareholders.’
The news comes in a busy period for Vertu. Recently published accounts show that it made a pre-tax profit of £23.5m for the first half of the year, while it has also confirmed that will end Sunday trading and ditch the mandatory wearing of ties for its employees.
