Three years after adding the Seat brand Vertu Motors has now gained its first Volkswagen franchises.
The plc car dealer group with 97 sites has bought Lincoln Volkswagen, on a leasehold property, and Boston Volkswagen, including a freehold property, from Lookers.
Vertu expects to pay £3m for the businesses, including £300,000 for goodwill, to be settled in cash from Vertu's existing resources.
In 2012 the two dealerships achieved £20.2m turnover and profit before interest and tax of £320,000.
Vertu said the deal further develops the group’s regional concentration in the East Midlands and Lincolnshire - its already operates Honda dealerships adjacent to both VW outlets.
In addition to the acquisition, Vertu is opening of a standalone Seat dealership at Star City, Birmingham on July 15 July.
This extends the Vertu's Seat representation westwards from the existing Derby SEat dealership, and brings the group’s number of Seat outlets to five.
Robert Forrester, CEO of Vertu Motors said: “We are delighted to introduce the hugely respected Volkswagen franchise which commands a UK market share of 8.75% into our manufacturer portfolio.
"These two dealerships will trade as Vertu Volkswagen and are situated in locations which are familiar to us from other group operations and build on our strong presence in the East Midlands.
"We are also delighted to be opening a new Seat dealership in Birmingham, the city where Bristol Street Motors was founded 100 years ago this year.
"These developments deepen our relationship with the Volkswagen Group, which we consider to be a key strategic development in building a balanced portfolio.”
The dealerships will be branded Vertu Volkswagen - aligned with the adjacent Vertu Honda businesses.
An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
Chilli pepper - 10/07/2013 16:24
Why do people talk about profit before interest? If these 2 dealerships only made £300k on this basis, then in real PBT terms they lost money, otherwise why would Lookers sell??!!! Good luck with The Seat dealership at Star City! Locally known as Stab City!!