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Vertu Motors PLC on Thursday announced that it has acquired Cornwall-based Helston Garages Group Ltd - a predominantly premium manufacturer automotive retail group.
The Gateshead, England-based car dealership said it had purchased 28 franchised sales outlets, adding significant coverage to the company’s existing 160 outlets, for a total consideration of £117.0 million in cash and cash equivalents of £65.0 million.
The purchase increases the company’s reach in the South West of England, increasing Vertu Motors’s sales outlets in the region to 32, up from the current four.
Vertu Motors said the acquisition was financed through a combination of renegotiated and new debt facilities.
‘We are delighted that Vertu Motors has agreed to acquire Helston and 28 dealerships, further evidence of the execution of our long-term strategy to build scale, geographic coverage and deepen our relationships with our key automotive manufacturers,’ Chief Executive Officer Robert Forrester said.
Vertu Motors’ key partners are BMW, MINI, Stellantis and Jaguar Land Rover, from whom the company ‘received strong report for the transaction.’
‘We are particularly pleased that we have received strong support for the acquisition from our manufacturer partners and our lending banks to support the deal. Volvo and Ferrari are introduced to our portfolio, which is a very proud moment for the group,’ Forrester said.
Vertu Motors said that the acquired dealerships generated revenues of £498.9m in 2021.
Vertu Motors shares were 3.2% higher, trading at 49.95 pence per share at midday on Thursday in London.
By Harvey Dorset, Alliance News reporter
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