25th Mar 2015 09:37
LONDON (Alliance News) - Pendragon PLC Wednesday said it will buy the trade and certain assets of a Lexus motor dealership located in Glendale, California for an estimated USD48.5 million in cash, a deal the auto retailer expects to boost earnings immediately and to bolster its existing Californian network.
Pendragon is buying the dealership from Texas Automobiles Leasing t/a Lexus of Glendale. The gross assets being acquired total USD27.5 million, including a freehold property valued at USD25.5 million and USD21.0 million of goodwill. The accounts of Lexus of Glendale showed a pretax profit of USD2.6 million in 2014, Pendragon said.
"The Lexus brand in the United States is one of the most desirable brands in the retail motor industry. This dealership is a high quality business, with territories in the Los Angeles area encompassing Glendale, Pasadena and Burbank. This represents an attractive addition to our existing dealerships in California," Pendragon Chief Executive Trevor Finn said in a statement.
Pendragon shares were up 0.8% at 40.30 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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