Lookers acquisition increases its Volvo dealership footprint

The top 10 AM100 dealer group Lookers has expanded its portfolio of Volvo dealerships with its takeover of Waterhouse Cars in Chelmsford.

The acquisition complements Lookers' existing Volvo dealership in nearby Colchester and adds 40 staff to the group.

Accounts for Waterhouse, which was owned by Richard and Henry Butler, show that in June 2021 it received two-years' notice of termination from Volvo Cars. That year it achieved £27.5m turnover.

Lookers has committed to a £2 million investment in the newly acquired business to bring it up to the current VRE (Volvo Retail Experience) brand standard.

The group is also set to invest £2.3m in its existing Volvo dealership in Colchester, in particular to improve its aftersales and electric vehicle infrastructure.

Duncan McPhee, Lookers' chief operating officer, said: “Growing our partnership with Volvo remains a priority and our acquisition and the new investment in Chelmsford, as well as our commitment to redevelop our existing dealership in Colchester are steps in the right direction for Lookers."

McPhee added that he was delighted to welcome the Waterhouse team to Lookers, and said he Lookers intends to "further extend our footprint of dealerships with this iconic brand across the country".

“Our acquisition and redevelopment commitments demonstrate our focus on expanding our business and we are actively pursuing a healthy pipeline of opportunities.”

Lookers now has Volvo dealerships in Chelmsford, Colchester, Stockport and Glasgow, plus Polestar dealerships and aftersales businesses in Manchester and Glasgow.

Last month Lookers told AM it was on the hunt for acquisition targets, as chief executive Mark Raban said that he was “delighted” with the car dealer group’s 2022 financial results, showing turnover rose 6.2% to £4.3 billion (2021: £4.05bn) as the AM100 group’s underlying pre-tax profits declined 8.2% to £82.7m (2021: £90.1m) in the trading period to December 31, 2022.

That PBT performance represented 3% growth, however, with the exclusion of the £9.8m of UK Government COVID-19 support received during 2021.