H.R. Owen Plc extends Bentley position and adds Aston Martin to its stable of luxury marques
H.R. Owen Plc ("H.R. Owen" or "the Company") is pleased to announce that it has acquired the entire issued share capital of Broughtons of Cheltenham Limited from its current shareholders, SP Broughton & Co Limited and Mr J Newcombe ("the Acquisition").
Broughtons of Cheltenham Limited operates three Bentley franchises, in Cheltenham, Pangbourne and Byfleet as well as an Aston Martin franchise and an Audi aftersales operation in Cheltenham ("the Business").
The total consideration for the Business, which is subject to the preparation of completion accounts and is payable in cash on completion of the Acquisition, is estimated to be £1.5 million, including a payment for the goodwill of the Business of £1.1 million. In addition, H.R Owen will settle a group loan due from the Business to SP Broughton & Co Limited of £1.3 million and assume the bank overdraft of the Business.
At 31 December 2009, the latest date for which audited filed accounts are available, the Business had gross assets of £14 million. In the year to December 2009 it had a turnover of £45 million and generated a marginal loss of £13,000 before tax. With improved conditions in 2010, the Business has increased turnover by over 25% and is expected to have made a convincing return to profit. The Acquisition is expected to be significantly earnings enhancing for the Company from 2012 onwards.
Chief Executive, Andy Duncan, commented:
"This important acquisition is a key step in implementing H.R. Owen's strategy for growth as outlined in May. The new Bentley businesses will extend our position with one of our principal existing marques, whilst the arrival of Aston Martin broadens our offering and is a very welcome addition to our portfolio.
"The acquisition helps us to offer our customers the very best luxury car experience in the world, in line with our `Experience is Everything' strategy as well as helping to drive growth for the business and additional value for our shareholders."
Bill Donnelly, Director of Aston Martin said:
"I am delighted that we are forging a new partnership with H. R. Owen; a retailer with a long and well deserved reputation for excellence."