1st Mar 2016 09:54
LONDON (Alliance News) - Vertu Motors PLC on Tuesday said it has added Mercedes-Benz to its car portfolio after acquiring Sigma Holdings Ltd, along with its subsidiary Greenoaks (Maidenhead) Ltd, for GBP21.9 million.
Greenoaks operates the Mercedes-Benz outlets in Reading, Ascot and Slough.
Vertu will pay an initial consideration of GBP18.4 million, settled from its existing cash resources and borrowing facilities. The remaining GBP3.5 million has been deferred for 12 months. Vertu expects the acquisition to be earnings enhancing in its first full year of ownership.
In 2015, Greenoaks made adjusted pretax profit of GBP1.2 million on revenue of GBP88 million.
"We are delighted to announce the introduction of Mercedes-Benz to the group, which is a significant further step in the growth of our premium business," Chief Executive Robert Forrester said in a statement.
"The Greenoaks business has operated in the Thames Valley for over 30 years, is well established in this attractive market area and brings three high quality freehold properties which will further strengthen the group's asset base," he added.
Shares in Vertu were trading up 2.3% at 66.47 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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