1:13 pm, May 1, 2015
VERTU Motors has completed the acquisition of two car dealerships for a combined £8m.
The Gateshead-based company has bought Lancashire-based Bury Land Rover from a subsidiary of Pendragon for about £7m.
Last year, Bury Land Rover reported revenue of £41m and earnings before interest and tax of £1.5m.
In a statement, Vertu said the move would ‘develop its representation of Land Rover across the north as the business will operate under its Farnell Land Rover fascia and management structure’.
The group already operates Land Rover showrooms in Nelson, Bolton and West Yorkshire, under the Farnell name.
In Bradford, Vertu negotiated with a subsidiary of Lancastle plc to buy the loss-making Bradford Jaguar business.
The £900,000 deal, which is expected to close in the next couple of weeks, will be settled in cash from the group’s reserves.
Last year the dealership reported revenues of £14.7m and a loss of £0.15m.
Vertu Motors chief executive Robert Forrester said: ‘Since 2013, the board has considered it strategically important to balance the group’s representation of volume franchises, with increased exposure to premium franchises.
‘Today’s announcement is a further step along this path with further extensions of our Farnell Land Rover and Jaguar brand.
‘Bury Land Rover is an earnings-enhancing acquisition that will further support the profit growth of the group in the short and medium term. Bradford Jaguar will complement our successful Land Rover operation in Bradford and will strengthen our Farnell brand in the north.’
The acquisitions bring the number of Jaguar dealerships Vertu operates to two, while the number of Land Rover dealerships run by the company now stands at five.
Paul Daly OF UHY Hacker Young advised on the acquisition of Bury Land Rover for Vertu and he said: ‘This acquisition represents a strong Land Rover opportunity that Vertu have added to their portfolio enabling them to extend their territory in the north.’
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