Auto retailer Lookers is to sell its parts business to Alliance Automotive for £120 million. Alliance Automotive is part of the larger European distributor Alliance Automotive Group, and has been operating in the UK since 1997, more recently under the Group Auto UK brand. Although still subject to shareholder approval, the deal is likely to be concluded before the end of the year.
Lookers is hoping to use the proceeds from the deal to expand its retailer network, and the first phase of this plan has resulted in the acquisition of West Midlands-based Warwick Holdings, which trades as Drayton Group. The £54.5 million deal sees Lookers acquire seven retailers operating Mercedes-Benz and Smart franchises, and comes as the acquisitive retailer has recorded pre-tax profits up 16 percent to £50.1 million and turnover up 33 percent to £2.34 billion for its 2016 first half year results.