Last checked at 7 Dec 2009 08:17
7 December 2009
Vertu Motors plc
("Vertu Motors" or the "Group")
Acquisition
Vertu Motors plc announces that it has acquired a Renault and SEAT dealership in Darlington, Co Durham through the purchase of the entire share capital of Typocar Ltd, trading as David Penman Cars for an estimated consideration of £0.7m plus £0.4m of debt repaid on acquisition. The purchase includes freehold property valued at £0.8m. Completion took place on 7 December 2009. The acquisition will be funded from existing cash resources.
The acquisition of the Renault dealership brings the total number of Renault dealerships operated by the Group to 3 and also brings the SEAT franchise to the Group for the first time. The dealership will be rebranded Bristol Street Motors. The Group now operates 6 dealerships in the North East of England and 58 sales outlets in total.
Robert Forrester, CEO of Vertu Motors said:
"This acquisition in the North East of England strengthens the regional presence of the Bristol Street Motors Brand. We are very pleased to strengthen our relationship with Renault who we see very much as a key strategic partner going forward and also to commence a relationship with SEAT (UK). This is our first partnership with a Volkswagen Group franchise and we see this as an important development and milestone."
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For further information please contact:
| Vertu Motors plc | |
| Robert Forrester, CEO | Tel: 0191 206 4617 |
| Karen Anderson, FD | Tel: 0191 298 6514 |
| Brewin Dolphin Investment Banking | |
| Andrew Kitchingman | Tel: 0845 270 8613 |
| Sean Wyndham-Quin | |
| Panmure Gordon (UK) Limited | |
| Andrew Burnett | Tel: 020 7459 3600 |
| Stuart Gledhill | |
| Financial Dynamics | |
| Caroline Stewart | Tel: 020 7831 3113 |
| Edward Westropp |
Notes to editors
Vertu Motors is the 9th largest motor retailer in the United Kingdom with 58 dealerships forming a national network across England, operating under the Bristol Street Motors and Bristol Street Motor Nation brand names. Manufacturer partners are Citroen, Ford, Iveco, Honda, Hyundai, Mazda, Peugeot, Renault, Vauxhall, Chevrolet, Fiat and SEAT.
Vertu Motors was established in November 2006 with the aim of consolidating the UK motor retail sector. The company listed on AIM in December 2006. In March 2007, the Group acquired the 13th largest motor retailer in the United Kingdom, Bristol Street Motors.
The Group currently operates 54 franchised sales outlets, 4 non-franchised sales operations and 2 stand alone service operations from 50 locations. It is intended that the Company will continue to acquire motor retail operations to grow a scaled dealership group. The Company's acquisition strategy is supplemented by a focused organic growth strategy to drive operational efficiencies through the national network.
www.vertumotors.com
www.bristolstreet.co.uk
www.vertuhonda.com
www.motornation.co.uk