Business
Further acquisition of premium & volume franchises
Further acquisition of premium & volume franchises.
About this update from Vertu Motors Plc
[{"type":"text","content":"\n \nRNS Number : 8376Z Vertu Motors PLC 01 June 2016 \n\n1 June 2016\nVertu Motors plc (\"Vertu\" or the \"Group\")\nFurther acquisition of premium and volume franchises\nAcquisition of Gordon Lamb Group Limited for £18.7m \nHighlights\n· Acquisition of five outlets in Derbyshire for £18.7m, including the Group's sixth Land Rover dealership\n· Brings Toyota into the Group's franchise portfolio for the first time\n· Three additional well-established dealerships in Chesterfield and Derby operating as Nissan and Skoda\n· Acquisition is expected to be earnings enhancing in its first full year of ownership\n· Secures a key acquisition target, as set out at the time of the capital raise in March 2016 \nVertu, the automotive retailer with a network of 132 sales and aftersales outlets across the UK, announces that it has acquired the entire issued share capital of Gordon Lamb Group Limited and its subsidiaries, including Gordon Lamb Limited, (together \"Gordon Lamb\") for a total cash consideration of £18.7m which has been settled from the Group's existing cash resources. Gordon Lamb operates the Toyota, Land Rover, Skoda and Nissan outlets in Chesterfield and the Skoda outlet in Derby and has traded for over 60 years.\nThe acquisition brings Toyota to the Group, further progressing the Group's strategic goal of growing its range of franchises. The transaction includes goodwill of £8.3m and brings freehold properties valued at £7.5m into the Group. The acquisition is an important development for the Group and is in line with the strategy set out at the time of the capital raise in March 2016. \nThe acquisition increases the number of outlets operated by the Group in Derbyshire from 10 to 14 and hence further provides synergies around marketing and management. The acquisition of Nissan in Chesterfield, for example, creates a market area for Nissan including Derby, Ilkeston and Sheffield and brings the total number of Nissan outlets the Group operates to 11. \nFor the year ended 31 December 2015, Gordon Lamb achieved consolidated revenues of £85.8m***, adjusted* EBITDA of £2.9m, adjusted* PBT of £2.7m and had net assets of £10.2m** as at 31 December 2015. The Board expects...