9:34 am, December 2, 2013
VERTU Motors Plc has acquired the entire share capital of Brookside Limited, which operates three Volkswagen dealerships in Nottingham and Mansfield.
The acquisition cost a total amount of £4.7m, including £1.6m of goodwill, which will be settled in cash from the group’s existing resources.
This follows Vertu Motors Plc’s acquisition of the Boston and Lincoln Volkswagen dealerships in July this year, increasing the group’s aftersales and outlets to 104.
For the year ended December 31, 2012 the management accounts of Brookside Ltd recorded a turnover of £35.7m and earnings before interest, taxes, depreciation and amortisation of £0.4m.
The Board expects this acquisition to enhance earnings in its first full year of ownership.
Robert Forrester, CEO of Vertu Motors, said: ‘We are delighted to announce the next step in our growth with Volkswagen and the Volkswagen Group.
‘Nottingham and Mansfield are important centres where Vertu already represents several manufacturer partners including Citroen, Hyundai, Honda and Suzuki. Adding Volkswagen to this list will further strengthen our business.
‘We are continuing to develop the Group by adding to existing franchise relationships and exploring new manufacturer partners. This acquisition increases the group to 104 sales and aftersales outlets and will enable us to generate further profitable growth for our shareholders.’
