Vertu Motors has revealed that it is engaged in “advanced discussions” over the potential acquisition of £627 million turnover premium car retailer Helston Garages Group.
The PLC announced that it could be about to complete the largest acquisition in its history, and its second acquisition in less than a month, in a statement issued via the London Stock Exchange this morning (November 9).
However, reports suggest that the Helston Garages business could be divided up, with Rybrook and Yeomans also making additions from the 40-site operation.
Vertu's latest move to acquire comes just weeks after chief executive Robert Forrester told AM the business could grow “anywhere at any time”.
It also comes just days after it became the UK’s largest BMW Motorrad motorcycle retailer with the £4.2 million acquisition of two Yorkshire dealerships from Saltaire Motor Company, trading as Allan Jefferies.
Commenting on its move for Vertu's fellow AM100 car retail group, Cornwall-based Helston Garages, Vertu’s statement said: “Vertu Motors confirms that it is in advanced discussions regarding the potential acquisition of Helston Garages Group Limited, a privately owned predominantly premium manufacturer automotive retail group based in the Southwest of England.
“These discussions may or may not lead to a transaction. Funding for the transaction, were it to occur, would be from re-financed and new debt facilities, including long-term mortgage funding.
“Further announcements will be made in due course as necessary.”
Helston Garages – the AM100’s 29th-placed retail group by turnover in 2021 – operates 40 car dealership locations, retailing vehicles from franchised partners Audi, BMW, Ferrari, Jaguar, Land Rover, Mini, Peugeot, Porsche, Skoda, Volkswagen and Volkswagen Commercial Vehicles.
It also operates a Carrs Select used car retail operation.
Vertu highlighted its acquisitive strategy in a recent H1 trading update.
But it also asserted that “high sector earnings over the last 18 months will be disregarded” in any acquisition negotiations as it continues to drive value from its growth.
In an interview on the day of the results’ publication, Forrester told AM that businesses looking to sell “have a choice”, adding: “We have to make sure that the cash that is spent in an acquisition will give us an appropriate return. The amount of goodwill is central to that.
“In my opinion profits were going to be down this year by around 50% this year, and I still don’t think that I’m far out with that, so we have to acquire with that in mind.”
Forrester said that acquisitions were in the pipeline but would give no indication as to where it was looking to add locations or which brands, adding that locations could be added “anywhere at any time”.
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