12th Oct 2005 07:00
Lookers PLC12 October 2005 12 October 2005 LOOKERS PLC STRENGTHENS AFTERSALES PARTS OPERATIONS WITH ACQUISITION OF APEC LIMITED Lookers plc ("Lookers" or the "Group"), a leading UK motor retail group, ispleased to announce that it has completed the acquisition of Bristol based APECLimited, the leading wholesale distributor of high quality own branded brakingparts to the automotive aftermarket. APEC, which employs 50 people and was established in 1969, has achieved aleading position in the supply of vehicle braking parts to motor factorsnationwide. Lookers is paying £9.25 million in cash for the entire issued sharecapital of the business. The business operates from a 40,000sq ft. packaging and distribution facilitybased on a freehold three acre site on the Great Western Business Park in Yate,Bristol. The acquisition will add around £15 million to Lookers' turnover andshould be earnings enhancing from January 2006. At 31 December 2004, thebusiness had net assets, including the property at market value, ofapproximately £7.0 million. In the 12 months to 31 December 2004, adjustedoperating profits of the business were £1.4 million. The newly acquired business will continue to trade under its existing name, fromits existing location and with the same senior operational management team. Ken Surgenor, Lookers' Chief Executive, said: "As we have previously stated ourstrategy is to strengthen our franchised, used cars and aftersales base throughorganic growth and by acquisitions. Whilst our focus in the first half was to grow our franchise portfolio andincrease our used car supermarkets presence, we are delighted to have taken thisopportunity to strengthen our position in the aftersales parts market.Aftersales and parts is one of the fastest growing segments of the automotivemarket and currently contributes 53% of the Group's gross profits. Havingsuccessfully entered the parts aftermarket in the UK through FPS, we areconfident that APEC will prove to be a successful addition to our partsactivities". For further information: Lookers plcKen Surgenor, Lookers Chief Executive 0161 291 0043David Dyson, Lookers Finance Director 0161 291 0043 Hudson Sandler 020 7796 4133James Hill / Nick Lyon Notes to editors: Lookers plc, headquartered in Stretford, Manchester, is one of the UK's leadingmulti-franchise motor retail groups. It operates over 80 franchised outlets andapproximately 40 vehicle servicing and parts sales facilities across the UK. Italso owns Charles Hurst, the largest motor dealer in Northern Ireland. Lookers, which reported annual turnover of approximately £1.1 billion for theyear ended December 2004, represents 22 marques, roughly equally split betweenvolume 12 and prestige 10. The Group specialises in new and used car sales, aswell as servicing and parts distribution. For further information on Lookers, including all its outlets in the UK and thefranchises it represents, please visit its website at www.lookers.co.uk. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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