Vertu buys 3 Lookers Honda dealers
Vertu has bought three Honda retail businesses from Lookers for £2 million. The three Honda dealerships are in Derby, Nottingham and Stockton-On-Tees and take Vertu’s Honda franchise total to 12. This makes Vertu Honda’s largest retail partner in Europe.
“The rationale for the sale is that Vertu already operate Honda dealerships in contiguous territories to these businesses,” said a Lookers spokesman. He continued: “The sale proceeds of the transaction were approximately £2.0m, received in cash.”
A Vertu spokesman added: “The Nottingham and Derby outlets have been owned by Lookers PLC for several years and their sales territories are adjacent to the Group’s existing Honda outlets in Mansfield and Grantham. The Stockton-On-Tees dealership was formerly owned by the Benfield Group and is located adjacent to the Group’s existing Honda outlets in Durham and Sunderland. Total consideration was approximately £2.0m, including goodwill of £0.2m. The consideration has been settled in cash from the Group’s existing resources.
“For the year ended 31 December 2015 the three dealerships achieved unaudited revenues of £39m and a break even trading result. The Board expects this acquisition to be earnings enhancing in its first full year of ownership.”