REG - Vertu Motors PLC - Acquisition

Vertu MotorsAnnouncement

13/12/2021 07:00

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RNS Number : 3588V  Vertu Motors PLC  13 December 2021

13 December 2021

Vertu Motors plc ("Vertu" or the "Group")

Acquisition

Vertu grows Toyota presence through acquisition

HIGHLIGHTS

·    Acquisition of two established, profitable Toyota dealerships located
in the East Midlands, building the Group's market share with this leading
manufacturer.

·    The businesses will be branded Vertu and supported by the
increasingly successful website, vertumotors.com

·    Cash consideration of £9.2m will be funded from the Group's existing
cash resources

·    Acquisition expected to be earnings enhancing in the year to 28
February 2023

ACQUISITION

Vertu, the UK automotive retailer with a network of 156 sales outlets across
the UK, announces the acquisition of the entire issued share capital of Farmer
& Carlisle Holdings Limited (the "business").

The long-established business operates two Toyota franchise dealerships
located in Loughborough and Leicester. The share capital was acquired for cash
consideration of £9.2m (including £0.9m net cash acquired and subject to
finalising completion accounts) and has been funded from the Group's existing
cash resources. The business includes two freehold dealership properties,
which have been included in the purchase consideration at a value of £6.0m.
Consideration includes a payment in respect of goodwill of £2.35m.

For the year ended 31 December 2020, the business achieved revenues of £29.2m
and a statutory reported profit before tax of £0.6m. The acquisition is
expected to be earnings enhancing for the year ending 28 February 2023 (FY23).

The Group's systems and processes will be implemented immediately and the
Business will be branded Vertu, reflecting the continued growth of the Vertu
brand in the UK. The new business will be supported by the increasingly
successful website, vertumotors.com. The acquisition increases the Group's
representation of the sought-after Toyota brand to a total of 3 locations
across the East Midlands. Post this acquisition, the Group represents 13
Manufacturer partners across 39 sales outlets in the East Midlands. The East
Midlands represents the most significant region operated by the Group in terms
of sales outlets.

Robert Forrester, CEO of Vertu Motors said:

"We are delighted to announce the Group's expansion with the much sought-after
Toyota franchise.  The addition of more Toyota sales outlets to the Group's
portfolio has long been a strategic objective of the Group since we envisage
the brand gaining market share in the medium-term and being well positioned to
take advantage of opportunities as the wider automotive sector evolves.

For further information please contact:

 

 Vertu Motors plc        Tel: 0191 491 2121

Robert Forrester, CEO

Karen Anderson, CFO
 Zeus Capital Limited    Tel: 020 3829 5000

Jamie Peel

 Andrew Jones

 Dominic King
 Camarco                 Tel: 020 3757 4983

 Billy Clegg

 Tom Huddart

 

Notes to Editors

Vertu Motors is the fifth largest automotive retailer in the UK with a network
of 156 sales outlets across the UK. Its dealerships operate predominantly
under the Bristol Street Motors, Vertu and Macklin Motors brand names.

Vertu Motors was established in November 2006 with the strategy to consolidate
the UK motor retail sector.  It is intended that the Group will continue to
acquire motor retail operations to grow a scaled dealership group.  The
Group's acquisition strategy is supplemented by a focused organic growth
strategy to drive operational efficiencies through its national dealership
network. The Group currently operates 152 franchised sales outlets and 4
non-franchised sales operations from 120 locations across the UK.

Vertu's Mission Statement is to "deliver an outstanding customer motoring
experience through honesty and trust".

Vertu Motors Group websites - investors.vertumotors.com
(http://investors.vertumotors.com) / www.vertucareers.com
(http://www.vertucareers.com)

Vertu brand websites - www.vertumotors.com (http://www.vertumotors.com) /
www.bristolstreet.co.uk (http://www.bristolstreet.co.uk) /
www.macklinmotors.co.uk (http://www.macklinmotors.co.uk) /
www.vertumotorcycles.com (http://www.vertumotorcycles.com)

 

 

 

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