2 Jul 2007 07:01
Vertu Motors PLC02 July 2007 2 July 2007 Vertu Motors plc ("Vertu Motors" or the "Group") Acquisition The Board of Vertu Motors are pleased to announce the acquisition of the tradeand assets of the Ford dealership in Morpeth, Northumberland from the JenningsGroup. Completion took place on 29 June 2007 with estimated cash considerationof £2.6m including a freehold property valued at £2.05m. The acquisition will befunded through the Group's existing debt facility with Barclays. The dealership will be re-branded Bristol Street Motors and complements theexisting sixteen Ford dealerships operated by the Group in England, and thethree existing Vauxhall dealerships in the North East of England. The Boardbelieve that by integrating the business into the Bristol Street managementstructure, operational performance improvement can be generated in the mediumterm. In the year ended 31 December 2006 the dealership had turnover of £8.2m. This acquisition follows the acquisition of five Honda dealerships announced on29 June 2007 and brings the total number of dealerships operated by Vertu Motorsplc to 46. Commenting on the acquisition, Robert Forrester (Chief Executive of Vertu Motorsplc) said, "The acquisition of this single dealership highlights once again theconsolidation opportunities in the motor retail sector. We are pleased to seeexpansion in the North East of England and the continued growth in theoperations of the Group in line with our strategy of expansion." 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 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange