Marshall Motor Group is set to break into the top 10 of the AM100 UK’s largest franchised dealers after agreeing to acquire five Mercedes-Benz dealerships from Pendragon.

The acquisition of Mercedes-Benz North West Market Area (MA5) could add about £90 million to Marshall’s turnover, taking it from 13th to 10th in the AM100.

This becomes its first link with Mercedes-Benz, a brand which Marshall’s chief executive Daksh Gupta knows well. He headed its franchises at previous employers Ridgeway Group and Inchcape Retail.

Once the deal is completed next month, Marshall will own Mercedes-Benz franchises in Blackburn, Blackpool, Bolton, Preston and South Lakes plus Smart franchises in Blackpool and Bolton.

As part of the deal, all of the area’s employees at these sites (around 170 in total) will transfer to Marshall and all of the staff at the five dealerships are currently being consulted.

Gupta said: “This is an important strategic acquisition for Marshall and we are delighted to be partnering with Mercedes-Benz and Smart, with whom we look forward to building a strong and lasting relationship.

“We are also very much looking forward to wel-coming and working with our new colleagues from MA5”.

At Pendragon, chief executive Trevor Finn said the undisclosed proceeds of this strategic disposal would be used to further reduce the group’s debts, which stood at £346.7m at the end of June.

The sale leaves Pendragon with nine remaining Mercedes-Benz businesses and three Smart franchises. These will continue to form a key and integral part of the group, Finn said.