Business
Acquisition of Sigma Holdings Ltd & Greenoaks Ltd
Acquisition of Sigma Holdings Ltd & Greenoaks Ltd.
About this update from Vertu Motors Plc
[{"type":"text","content":"\n \nRNS Number : 5465Q Vertu Motors PLC 01 March 2016 \n\n1 March 2016\n \nVertu Motors plc (\"Vertu\" or the \"Group\")\nAcquisition of Sigma Holdings Limited and Greenoaks (Maidenhead) Limited for £21.9m brings Thames Valley Mercedes-Benz franchise to Vertu\nHighlights\n· Introduction of Mercedes-Benz, Mercedes AMG and smart into the Group's franchise portfolio to further develop the premium mix\n· Three well established dealership operations, all with freehold properties in attractive motor retail locations in the Thames Valley - Reading, Ascot and Slough\n· Acquisition is expected to be earnings enhancing in its first full year of ownership\nVertu, the automotive retailer with a network of 126 sales and aftersales outlets across the UK, announces that it has acquired the entire issued share capital of Sigma Holdings Limited and its subsidiary Greenoaks (Maidenhead) Limited (together \"Greenoaks\") for a total cash consideration of £21.9m. In addition to the purchase of the share capital of Greenoaks, vendor shareholder loans of £9m have been settled in cash on completion by Vertu. Greenoaks operates the Mercedes-Benz outlets in Reading, Ascot and Slough, with the Reading and Ascot outlets also representing the smart franchise and Ascot being an AMG performance centre. Greenoaks has represented Mercedes-Benz for over 30 years.\nThe acquisition introduces Mercedes-Benz, Mercedes AMG and smart to the Group, further progressing its strategic goal of growing the premium mix within the Group. Each of the dealership freeholds is owned by Greenoaks which will add further to the strong freehold backing of the Group's balance sheet. The total cash consideration of £21.9m includes initial consideration of approximately £18.4m and has been settled from the Group's existing cash resources and borrowing facilities. A further £3.5m is deferred for twelve months. The transaction includes goodwill of £13m. \nFor the year ended 31 December 2015, Greenoaks achieved consolidated revenues of £88m, adjusted* EBITDA of £2.4m, adjusted* PBT of £1.2m and had net assets of £6.2m as at 31 December 2015. The Board expects this acquisition to be earnings enhancing in its first full year of ownership. \nRobert Forrester, CEO...