Motor retailer Vertu has added 28 sales outlets to its burgeoning portfolio after snapping up a premium car company in the South West in a £120m deal - the largest in the Tyneside firm’s history.
The Gateshead listed company has now welcomed Ferrari and Volvo into the group following the acquisition of Helston Garages Group Limited, a £499m turnover family firm.
Cornwall based Helston has been a family run business for more than 60 years, building up a network of quality dealerships across Dorset, Somerset, Devon and Cornwall, operating under brands including Westerly, Carrs and Truscotts, and at an enterprise value of £120.1m, the deal is represents 6.8 times the Ebitda of the acquired dealerships.
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Despite the challenging economic conditions, Vertu CEO Robert Forrester said the company remains committed to building for the future and continue its long-term strategy to build scale, geographic coverage and deepen relationships with key automotive manufacturers.
Aside from the newly-acquired Ferrari dealership, Vertu will rebrand the acquired sites using the Vertu Motors and Bristol Street Motors brands.
The acquisition, now subject to FCA regulatory approval, adds significant geographic coverage to the group’s existing footprint of 160 franchised outlets. Following the acquisition, Vertu will have 32 sales outlets in the region, up from the current four.
The deal has been carried out for a total consideration of £117m, net of cash and cash equivalents of £65m, and has been financed through a combination of re-negotiated and new debt facilities.
Vertu has also renegotiated and added new debt facilities, bringing total available facilities to £302m.
Mr Forrester said: “We are delighted that Vertu Motors has agreed to acquire Helston and 28 dealerships, further evidence of the execution of our long-term strategy to build scale, geographic coverage and deepen our relationships with our key automotive manufacturers. We are particularly pleased that we have received strong support for the acquisition from our manufacturer partners and our lending banks to support the deal. Volvo and Ferrari are introduced to our portfolio, which is a very proud moment for the group.
“Helston has a long track record of delivering strong profitability and we have admired the group for a long time. The acquisition will be both financially and strategically accretive for Vertu Motors, delivering long term value creation for our shareholders. We now have 32 dealerships in the South West, which becomes a core region. I am delighted to welcome so many new colleagues to the group and look forward to integrating Helston and the team into Vertu Motors, particularly introducing our digital expertise.
“While there is uncertainty in the UK economy today, we continue to invest for the long-term and remain excited about the future for Vertu Motors.”
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