Iconic Manchester car dealership Lookers is set to come under Canadian ownership after the board and major shareholders agreed to a nearly half a billion pound takeover.
The business, founded in Manchester city centre in 1908, said on Tuesday that it had negotiated a deal with Alpha Auto Group, an Ontario-based car dealership chain. The 120p-per-share bid values the now Altrincham-based business at around £465.4 million, it told shareholders.
That's around 35 per cent more than the company’s shares were trading at on Monday.
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The deal has already got big buy-in, with the board unanimously backing it alongside investors who hold 42 per cent of the company's shares.
Lookers said that TDR Capital, Artemis Investment Management, J O Hambro and Schroder had all promised to vote for the deal.
Alpha Auto Group will buy Lookers through its Global Auto Holdings Limited, which is owned by Alpha’s founder and referred to as Bidco in the stock exchange filing.
Lookers chairman Paul Van der Burgh said: "After a period of extensive engagement between the parties, the offer represents an attractive opportunity for our shareholders to realise cash now for their investment at a significant premium to the prevailing share price.
"We have spent considerable time reviewing the potential impact of Bidco's ownership on Lookers' wider stakeholders and are confident that the commitments given by them will protect stakeholder interests.
"Bidco has clearly outlined its commitment to continue supporting our customers, operations, communities, and most importantly our talented and committed people."
Lookers reported a pre-tax profit of £84.4 million last year on revenue of £4.3 billion. It employs around 6,500 people.
Kuldeep Billan, executive chair of AAG, said: "With the UK auto retail market undergoing substantial change, including the adoption of new distribution models, we believe that the wider group is well positioned to navigate the current environment with geographically diversified operations and a focus on operational excellence."
Founded by John Looker, the company initially sold bicycles, parts, accessories and the occasional used car.
According to its website, in 1910 the business joined forces with a garage owner in Hardman Street in the centre of Manchester to create Lookers Ltd. The business quickly switched to selling mainly cars, and in 1973 it listed on the London Stock Exchange.
