2nd Jul 2018 12:13
LONDON (Alliance News) - Vertu Motors PLC said Monday that it has acquired Mercedes-Benz cars dealership operator Hughes Group Holdings Ltd and its unit Hughes of Beaconsfield Ltd for GBP21.8 million.
The company said six sales outlets in total were added to the company by the acquisition, which is expected to be earnings enhancing in its first full year of ownership. The acquisition will also bring the the Mercedes-Benz Commercial Van franchise to Vertu Motors for the first time through the operation in Aylesbury, England.
Following this acquisition, Vertu Motors' network of sales and aftersales outlets across the UK has increased to 125 outlets. The deal consideration has been funded from Vertu's existing cash resources and borrowing facilities.
For 2017, Hughes achieved revenue of GBP150 million and pretax profit of GBP2.1 million. Hughes also operates outlets for Skoda in Aylesbury, Jeep in Beaconsfield and Peugeot in High Wycombe and operates a vehicle preparation centre in Wendover.
Vertu is scheduled to release its annual general meeting statement on July 25. The stock was up 1.2% at 50.20p Monday.
Related Shares:
Vertu