4 Mar 2019 07:00
4 March 2019
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Marshall completes two acquisitions to become the UK's largest ŠKODA retailer
Marshall Motor Holdings Plc, one of the UK's leading automotive retail groups, is pleased to announce that it has completed two acquisitions comprising six ŠKODA franchised dealerships. Marshall is now the UK's largest ŠKODA retailer which is line with the Group's strategy to become the UK's premier automotive group.
The Group acquired the business and assets of Leicester and Nottingham ŠKODA from Sandicliffe Limited on 31 January 2019. It subsequently acquired the business and assets of Bedford, Harlow, Letchworth and Northampton ŠKODA from Progress Bedford Limited on 28 February 2019. Each acquisition was completed in consultation with, and with the support of, ŠKODA UK.
The aggregate cash consideration paid for the goodwill and fixed assets of the acquired businesses was £3.5m. Each of the acquired businesses operates from leasehold properties which are fully compliant with the latest ŠKODA brand requirements. The acquired businesses made aggregate losses before tax* of approximately £0.4m in the twelve months ended 31 December 2018 and as a result, the transactions are expected to be earnings dilutive in the current financial year. They are, however, expected to be earnings enhancing in future years.
As a result, the Group now represents ŠKODA in 11 locations in the UK: Barnstaple, Bedford, Croydon, Harlow, Leicester, Letchworth, Newbury, Northampton, Nottingham, Oxford and Reading.
ŠKODA has enjoyed strong growth in recent years. In 2018, the brand achieved 74,512 registrations which represented a UK market share of 3.2% and has seen a 13% growth in the last 5 years. This has been driven by significant product development, particularly across the SUV segment, and this is expected to increase further with the introduction of new models in 2019. The brand is part of the Volkswagen Group which has announced it will invest almost €44 billion on electrification and new mobility services.
Daksh Gupta, Chief Executive of MMH, said:
"These acquisitions are an exciting milestone for Marshall in which we become ŠKODA's largest UK retailer by adding six further sites in excellent locations which are contiguous to our existing ŠKODA sites. The acquired businesses have good potential for growth and improvement in their operating performance as part of a scaled and focused division.
We believe it is the right time to grow our portfolio with ŠKODA and these acquisitions demonstrate our commitment to our stated strategy to grow with existing brand partners in new geographic territories. We are very proud to represent the ŠKODA brand and wish to thank the ŠKODA UK management team for their support over the years and we look forward to building on our excellent relationship.
I would like to welcome all colleagues of the acquired businesses to Marshall."
Rod McLeod, Director of SKODA UK said:
"Marshall Motor Holdings Plc is a well-respected and established vehicle dealership group. These acquisitions will see Marshall become our largest retail investor and I am very pleased that together we will continue to expand our offer of class-leading products to customers across the UK. ŠKODA continues to go from strength to strength. With the arrival of new models and the brand's first electric vehicles just around the corner, this is a key time for Marshall to further invest in ŠKODA."
ENDS
* annualised results applying the Group's accounting policies
For further information and enquiries please contact:
Marshall Motor Holdings plc | c/o Hudson Sandler Tel: +44 (0) 20 7796 4133 |
Daksh Gupta, Chief Executive Richard Blumberger, Chief Financial Officer | |
Investec Bank plc (NOMAD & Broker) | Tel: +44 (0) 20 7597 5970 |
Christopher Baird | |
David Flin | |
David Anderson | |
Hudson Sandler | Tel: +44 (0) 20 7796 4133 |
Nick Lyon Bertie Berger Nick Moore |
Notes to Editors
About Marshall Motor Holdings plc (www.mmhplc.com)
The Group's principal activities are the sale and repair of new and used vehicles. The Group's businesses comprise a total of 106 franchises covering 23 brands, operating from 89 locations across 27 counties in England. In addition, the Group operates five trade parts specialists, three used car centres, five standalone body shops and one pre delivery inspection centre.
In April 2018 the Group was recognised by the Great Place to Work Institute, being ranked the 21st best place to work in the UK (large company category). This was the eighth year in succession that the Group has achieved Great Place to Work status.