7th Jan 2019 09:05
LONDON (Alliance News) - Vertu Motors PLC on Monday said it acquired Vans Direct Ltd, an online retailer of new vans, for an estimated total consideration of GBP7.5 million.
The automotive retailer said the total payout includes an estimated amount in respect of an earn-out arrangement rewarding an on target performance over a two year period. The terms of this earn out may result in additional consideration, up to a GBP2 million, being paid in the event that future profit targets are exceeded.
For the year to the end of October 2017, Vans Direct reported revenue of GBP34.6 million and earnings before interest, taxes, depreciation, and amortization of GBP1.2 million. Vertu Motors expects this acquisition to be immediately earnings enhancing.
"This is an exciting development in a growing space, which is synergistic and parallel to our core motor retail business and which strengthens our multi-channel offering," said Vertu Motors Chief Executive Robert Forrester.
"We expect Vans Direct to generate an earnings stream with higher gross and net margins than those typically earned by the group, and we believe that the future growth prospects for this new business are significant," added Forrester.
Vertu Motors shares were trading 0.4% lower on Monday at 36.00 pence each.
Related Shares:
Vertu