Vertu Motors plc Acquires Ford dealerships in Bolton and Wigan
Vertu Motors plc is pleased to announce that it has acquired the trade and certain assets of two Ford main dealerships in Bolton and Wigan, and two satellite operations in Walkden and Horwich, from Gordons (Bolton) Limited ("Gordons"). The Gordons business has represented Ford in Lancashire for over 100 years and employs 218 people across the four locations.
Total consideration isestimated at £11.0m and will be settled in cash from the Group's existing resources. No material goodwill ispayable on this transaction.The assets acquired include four freehold properties valued at £6.9m. This includes a development site at Wigan where a new Ford dealership will be built over the next six months to allow relocation from the current leasehold premises.
For the year ended 31 December 2013, the management accounts of Gordons showed revenue of £76.7m and operating profit of £0.3m. The dealerships are expected to be earnings neutral in the first full year of ownership and earnings enhancing in the financial year starting 1 March 2016.
This transaction increases the Group's representation with Ford to 22outlets consolidating the Group's position as Ford's third largest partner in the UK. The Group now operates a total of 114 sales and aftersales outlets across the UK.
Robert Forrester CEO of Vertu said:
"The Board is delighted to announce the acquisition of this well established business in Lancashire, which will provide further scale to theGroup's Bristol Street Motors Ford business.
We are pleased to welcome over 200 new colleagues into the Group who bring with them a wealth of experience in the Ford brand. This acquisition also brings with it some substantial freehold property assets which the Group will actively manage to enhance shareholder value."