Franchised motor retail group Cambria has bought the Land Rover operation in Welwyn Garden City from Jardine Motors Group for £10.8 million.
Cambria has also disposed of its Jaguar and Aston Martin franchises in Exeter to Helston Garages. The consideration for the disposal is expected to be in the region of £1.3 million.
The added Land Rover dealership is located approximately two miles from the Group’s Jaguar and Aston Martin franchises on Great North Road, Welwyn Garden City. The Group now operates three Land Rover dealerships under the Grange trading name.
The acquired dealerships’ management accounts for the year ended 31 December 2015 show unaudited revenue of £54 million and Cambria estimates the profit before tax for the same period was £2.5 million. It is anticipated that this acquisition will be immediately earnings enhancing for the Group in the second half of the financial year to 31 August 2016.
The combined Jaguar and Aston Martin franchises at the Exeter dealership had revenue of £20 million and made a positive net profit contribution to the Group of £0.5 million in the 2015 financial year.
Both the acquisition and disposal of the businesses above are in line with the Jaguar Land Rover retail strategy that both the Jaguar and Land Rover brands are to be represented by the same dealer in a given franchise territory. Cambria already runs the Jaguar Land Rover territory in neighbouring North London.
Following these transactions, Cambria will operate a total of 29 dealerships representing 44 franchises and 17 brands across the UK.