South East-based auto retailer Caffyns has announced plans to sell its Land Rover business to Harwoods for £5.7 million. The deal for the Lewes-based site is expected to be concluded by the end of April. Caffyns’ decision was prompted by Jaguar Land Rover electing not to renew its contract with the retailer to sell its range of premium 4×4 vehicles. The current five-year deal expires on 31 May.
Caffyns plans to use the money raised from the sale to reduce its debt and re-invest in the business. The auto retailer will also retain the freehold of the Lewes site and lease it to Harwoods for up to three years from the date of the deal’s completion. The final sale price includes a sum based on the remaining vehicle stock and parts, which is currently valued at £3.2 million.