6th May 2014 08:44
LONDON (Alliance News) - Vertu Motors PLC said it has acquired Hillendale Group Ltd - which operates a Land Rover dealership in Nelson, near Burnley, Lancashire and a Jaguar dealership in Bolton, Lancashire - in a deal worth GBP8.2 million.
The company said the total consideration includes GBP2.0 million settled by the issue of 3.4 million shares in Vertu at 58.64 pence per share, with the balance settled in cash from the group's existing resources. Vertu Motors was trading flat at 60.00 pence Tuesday morning.
"The vendor has undertaken to Vertu not to dispose of these new shares for a period of 12 months from completion, except in certain limited circumstances," Vertu said.
For the year ended December 31, the company said Hillendale posted revenue of GBP34.9 million and earnings before interest, taxation, depreciation and amortisation of GBP1.0 million.
Of the value ascribed to Hillendale, Vertu said GBP6.4 million represents goodwill.
Vertu said it expects the acquisition to be earnings enhancing in its first full year of ownership.
"Land Rover remains one of the most attractive franchises from the perspective of the motor retailer, and we are very pleased to extend the reach of the group's highly successful businesses in Leeds, Guiseley and Bradford into Lancashire," Chief Executive Robert Forrester said in a statement.
"The Jaguar franchise is set to see substantial new product flow in the next few years following significant product development investment by Jaguar Land Rover," he added.
Vertu said will publish its full-year results on Wednesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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