Vertu Regulatory News (VTU)

29 Jun 2007 07:03

Vertu Motors PLC29 June 2007 29 June 2007 Vertu Motors plc ("Vertu" or the "Group") Acquisition Vertu Motors plc announces that it has acquired four Honda car dealerships andone Honda motorcycle dealership in the East Midlands, through the purchase ofthe entire share capital of Grantham Motor Company Limited for a cashconsideration of £4.6m. Completion took place on 28 June 2007. The acquisitionswill be funded through the Group's existing debt facility with Barclays. The acquisition of the Honda dealerships in Grantham, Lincoln, Boston andRetford is Vertu's first introduction to the fast growing Honda franchise and isan excellent geographical fit with the existing Vertu Motors businesses in theEast Midlands. The acquisition includes two freeholds, one long leasehold and one leaseholdproperty. The Net Asset Value as at 31 December 2006 was £1.4m, which included£1.6m of property assets. In the year to 31st December 2006, the businesses made£0.8m of profit before taxation with turnover of £50 million. This acquisition brings the total number of dealerships operated by the group to45. Vertu Motors plc is now the tenth largest motor retailer in the UnitedKingdom by turnover. Robert Forrester, CEO of Vertu Motors said: "We are pleased to have announced our third acquisition since we listed on AIMin December 2006, as we continue to consolidate the highly fragmented UK motorretail market. "We are excited to have five Honda dealerships to start our relationship withHonda, who we regard as a key strategic partner going forward. I look forward toworking with these businesses and welcoming all our new colleagues into theGroup." -Ends- For further information please contact: Robert Forrester, CEO, Vertu Motors plc, Tel: 0191 206 4617 Andrew Kitchingman, Brewin Dolphin Securities, Tel: 0845 270 8613 Jonathon Brill/Billy Clegg/Edward Westropp, Financial Dynamics, Tel: 020 78313113 This information is provided by RNS The company news service from the London Stock Exchange