Business
Acquisition of three Honda dealerships
Acquisition of three Honda dealerships.
About this update from Vertu Motors Plc
[{"type":"text","content":"\n \nRNS Number : 8226M Vertu Motors PLC 25 January 2016 \n\n25 January 2016 \n \n \nVertu Motors plc (\"Vertu\" or the \"Group\")\n \nAcquisition of three Honda dealerships\n \n \nVertu, the automotive retailer with a network of 122 sales and aftersales outlets across the UK, announces that it has acquired the trade and assets of three Honda dealerships in Nottingham, Derby and Stockton-On-Tees from Lookers PLC for a total consideration of approximately £2m.\n \nAcquisition Highlights:\n· Purchase of three Honda dealerships, all located in contiguous territories to existing Vertu Honda dealerships\n· Consolidates the Group as Honda's largest retail partner in Europe with 12 car dealerships\n· Regional synergy opportunities with existing Vertu Honda operations\n· Board expects acquisition to be earnings enhancing in first full year of ownership\n \nAfter the acquisition of these three leasehold dealerships the Group will operate twelve Honda car outlets and two Honda motorcycle outlets.\n \nThe Nottingham and Derby outlets have been owned by Lookers PLC for several years and their sales territories are adjacent to the Group's existing Honda outlets in Mansfield and Grantham. The Stockton-On-Tees dealership was formerly owned by the Benfield Group and is located adjacent to the Group's existing Honda outlets in Durham and Sunderland. \n \nTotal consideration was approximately £2.0m, including goodwill of £0.2m. The consideration has been settled in cash from the Group's existing resources.\n \nFor the year ended 31 December 2015 the three dealerships achieved unaudited revenues of £39m and a break even trading result.\n \nThe Board expects this acquisition to be earnings enhancing in its first full year of ownership.\n \n \nRobert Forrester, CEO of Vertu Motors said:\n\"We are delighted to be expanding our representation with Honda in these areas which will provide us with strong marketing and other operational synergies.\n \n\"Honda has a very strong new product line up with New Jazz, New Civic, New CR-V, New HR-V alongside sportier premium products such as Type R and NSX.&...