LONDON (Alliance News) - Car dealerships Cambria Automobiles PLC and Vertu Motors PLC both snapped up new Land Rover sites on Friday, with Cambria buying a franchise in Swindon and Vertu acquiring sites in Bury and Bradford.
Cambria will pay GBP7.6 million in cash for the Land Rover franchise in Swindon from TH White Ltd, Cambria's second Land Rover dealership.
The consideration includes GBP2.25 million for the freehold property, GBP3 million of goodwill, GBP0.07 million for the fixed assets, and the remainder for used and demonstrator vehicles, parts stocks and apportionments.
Cambria intends to move the newly-acquired operation to a redeveloped site alongside its existing Jaguar dealership in Swindon. The development will take place over the next two years.
"The acquisition of the Land Rover dealership in Swindon aligns perfectly with our stated strategy to develop our portfolio of premium and high luxury franchises. The Swindon territory is well known to us with the Cambria Group established in the town following its first acquisition in 2006," said Cambria Chief Executive Mark Lavery.
Vertu, meanwhile, has acquired the business and assets of Bury Land Rover in Lancashire and and has exchanged contracts to acquire the business and assets of Bradford Land Rover in West Yorkshire.
Bury Land Rover has been acquired from a subsidiary of UK-listed car dealership Pendragon PLC for GBP7 million in cash, while Bradford Land Rover has been acquired for GBP0.9 million from a subsidiary of Lancaster PLC, itself a unit of Jardine Motors, which is part of Bermuda-based conglomerate Jardine Matheson Holdings.
"Since 2013, the board has considered it strategically important to balance the group's representation of volume franchises, with increased exposure to premium franchises. Today's announcement is a further step along this path with further extensions of our Farnell Land Rover and Jaguar brand," said Vertu Chief Executive Robert Forrester.
Cambria shares were up 3.3% to 58.90 pence on Friday, while Vertu shares were up 1.6% to 54.85 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.