UK car dealer group Lookers is acquiring 10 dealerships from rival group HR Owen which together are expected to add around GBP175m to its annual turnover, according to citywire.co.uk.
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This is Lookers’ first acquisition since fighting off the unwanted GBP245m bid from rival motor dealer Pendragon, the report said.
The deal involves two Chrysler Jeep sites, two Lexus shops, two Land Rover outlets and four Mercedes-Benz showrooms, all in prime London or ‘home counties’ locations.
The website said the combined operating profit of the businesses, all in South East England, was around GBP1.8m in the year to last 31 December.
But it noted that the price of the deal, which is expected to be completed by the end of the month, is complex in that it involves GBP5m in goodwill and approximately GBP8.1m of fixed assets, together with an amount equal to the net book value of stocks at completion. The total value is expected to be between GBP18-25m.
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By GlobalDataLookers reportedly said the acquisition is consistent with its strategy of targeting acquisitions to expand existing markets with preferred automaker partners.
Lookers bought six Premier Automotive Group dealerships from Owen in February, citywire.co.uk noted.
