26th May 2016 08:39
LONDON (Alliance News) - Marshall Motor Holdings PLC on Thursday said it has bought Ridgeway Garages (Newbury) Ltd for GBP106.9 million in cash.
Shares in Marshall Motor were trading up 26% at 191.00 pence on Thursday morning following the announcement.
The automotive retail and leasing group will fund the acquisition from its existing resources.
Ridgeway is a multi-franchise dealer group operating across the southern home counties and Wiltshire and Dorset, representing 12 brands via 30 franchised dealerships. It also operates five own-branded used car centres, two trade parts specialists, two service centres, two standalone body shops and a pre-delivery inspection centre.
Ridgeway made a revenue of GBP722.6 million in financial 2015 and adjusted earnings before interest, tax, depreciation and amortisation of GBP20.2 million.
Marshall Motor said the acquisition adds four Mercedez-Benz commercials operations to its portfolio and extends its geographic footprint to 25 from 19 counties in England.
Marshall Motor expects the acquisition to be significantly earnings enhancing from financial 2016, and said it will move the company to the UK's 7th largest motor dealer group from the 10th largest.
"Ridgeway is a company I have been associated with since 2007. David Newman and his team have built an excellent business with fantastic senior management, great staff, strong performance and a similar culture to MMH. I very much look forward to welcoming our new Ridgeway colleagues to the group and working closely with them again into the future," Chief Executive Dakesh Gupta said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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