Business
Acquisition of Taxi Centre & Easy Vehicle Finance
Acquisition of Taxi Centre & Easy Vehicle Finance.
About this update from Vertu Motors Plc
[{"type":"text","content":"\n \nRNS Number : 1559W Vertu Motors PLC 05 November 2014 \n \n\n5 November 2014 \n \n \nVertu Motors plc (\"Vertu\" or the \"Group\")\n \nAcquisition of The Taxi Centre Limited and Easy Vehicle Finance Limited: specialist brokers of vehicles to the private taxi sector\n \nVertu Motors plc is pleased to announce that it has acquired the entire share capital of The Taxi Centre Limited and Easy Vehicle Finance Limited (together \"the Taxi Centre\") which source vehicles for private operators in the taxi sector. The business which operates across the United Kingdom is located in Paisley, Scotland, employs eight people and has been established for ten years. \n \nTotal consideration, which includes £1.1m of goodwill, is estimated at £0.7m of which £0.2m will be settled by the issue of 343,053 ordinary shares in Vertu at 58.3 pence per share, with the balance settled in cash from the Group's existing resources. The vendor has undertaken to Vertu not to dispose of these new shares for a period of 12 months from completion, except in certain limited circumstances. In addition there is an earn-out arrangement whereby the vendor will earn 20% of the pre-tax profits of the Taxi Centre over a three year period after completion. The assets acquired include a short leasehold office property. \n \nFor the year ended 31 December 2013, the management accounts of the Taxi Centre showed revenue of £9.7m and EBITDA of £0.4m. The Board expects this acquisition to be earnings enhancing in its first full year of ownership and is confident the Vertu Group will drive future profit growth.\n \nRobert Forrester CEO of Vertu said:\n\"The Group is confident that the acquisition of this cash generative business will produce profit enhancing synergy opportunities in the supply of new and used vehicles. We look forward to welcoming the experienced Taxi Centre team into the growing Vertu Group.\"\n \nFor further information please contact:\n \n\n\n\n\nVertu Motors plc\n\n\n\n\n\n\n\nRobert Forrester, CEO\n\n\nTel: 0191 491 2111\n\n\n\n\nMichael Sherwin, FD\n\n\nTel: 0191 491 2114\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nLiberum \n\n\n\n\n\n\n\nPeter T...