11th Aug 2006 07:01
Lookers PLC11 August 2006 11 August 2006 Lookers plc Lookers acquires ten dealerships from H R Owen Plc Lookers plc, one of the leading multi-franchise motor retail groups in the UK,today announces a conditional agreement to acquire the business and certainassets of ten dealerships from H R Owen Plc, comprising two Chrysler Jeep sitesat Hatfield and Romford, two Lexus sites at Hatfield and Brighton, two LandRover sites at Acton and South Kensington and four Mercedes-Benz sites atBrighton (includes Smart), Eastbourne, Gatwick and Redhill. Completion is expected to take place by the end of August 2006 and is subject toapproval by the shareholders of H R Owen and receipt by Lookers of landlords'consent to the assignment of the leaseholds of the properties. The consideration payable in cash will be £5.0 million goodwill andapproximately £8.1 million of fixed assets, together with an amount equal to thenet book value of stocks at completion. The acquisition is expected to add approximately £175 million to Lookers' annualturnover and in the year ended 31 December 2005 the businesses generatedoperating profit of approximately £1.8million. The gross assets to be acquiredrelating to the businesses were £34.6million at 31 December 2005. Theacquisition is consistent with the Group's successful strategy of targetedacquisitions to expand existing market areas with preferred manufacturerpartners. The acquisition follows Lookers' successful acquisition andintegration of six Premier Automotive Group ("PAG") dealerships from H R Owen inFebruary 2006 and significantly improves the mix of prestige brands, includingthe addition of Mercedes-Benz to Lookers' franchise portfolio. Commenting, Ken Surgenor, Chief Executive said: "In line with our stated strategy these dealerships complement our existingmarket areas in the South East and we are confident that, as with the previouslyacquired H R Owen businesses, they will prosper and will be earnings enhancingin their first full year under Lookers' ownership. We are especially pleased tohave been approved by Mercedes Benz as a market area partner and we look forwardto operating one of the industry's pre-eminent franchises." High resolution photographs will be available to media at www.vismedia.co.ukfrom 10.00am. For further information: Lookers plc 0161 291 0043 Ken Surgenor (Chief Executive)David Dyson (Finance Director) Hudson Sandler 020 7796 4133 Nick LyonJames HillKate Hough This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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