Business
Acquisition of Hughes Group Holdings Ltd £21.8m
Acquisition of Hughes Group Holdings Ltd £21.8m.
About this update from Vertu Motors Plc
[{"type":"text","content":"\n \nRNS Number : 1625T Vertu Motors PLC 02 July 2018 \n\n2 July 2018 \nVertu Motors plc (\"Vertu\" or the \"Group\")\nAcquisition of Hughes Group Holdings Limited for £21.8m\nVertu achieves significant Mercedes-Benz presence in the M4/M40 corridor\nHighlights\n· In line with Vertu strategic objectives: enhances Premium mix, freehold assets acquired\n· Creates significant opportunity in M4/M40 corridor for Mercedes-Benz and Vertu by unifying Mercedes-Benz dealerships in adjacent market areas under Vertu's sole ownership - Beaconsfield and Aylesbury added to existing outlets in Reading, Ascot and Slough\n· Vertu's first Mercedes-Benz Commercial van franchise acquired: Group now represents the top eight van franchises in the UK\n· Acquisition is expected to be earnings enhancing in its first full year of ownership\nVertu announces that it has acquired the entire issued share capital of Hughes Group Holdings Limited and its subsidiary Hughes of Beaconsfield Limited (together \"Hughes\") for an estimated cash consideration of £21.8m, based upon estimated net assets of £12.0m and goodwill of £9.8m. £1.5m of this amount will be deferred for a period of 12 months. Following this acquisition, the Group's network of sales and aftersales outlets across the UK has increased to 125 outlets. \nIn total, six sales outlets are added to the Group by this acquisition which the Board expects to be earnings enhancing in its first full year of ownership. The operational management of the successful Hughes business will remain in place following acquisition. \nHughes has represented Mercedes-Benz for over 40 years, operating outlets in Beaconsfield and Aylesbury, which is an adjacent market area to Vertu's existing Mercedes-Benz operations in Reading, Ascot and Slough. The acquisition also brings the Mercedes-Benz Commercial Van franchise to the Group for the first time through the operation in Aylesbury. Hughes also operates outlets for Skoda in Aylesbury, Jeep in Beaconsfield and Peugeot in High Wycombe and operates a vehicle preparatio...