31st Jan 2005 07:00
Lookers PLC31 January 2005 31 January 2005 LOOKERS PLC BUYS LEADING USED CAR SUPERMARKET Acquisition Lookers plc, one of the UK's top ten new and used car retailers, has completedthe acquisition of Bristol Trade Centre, a leading used car supermarket. The move gives Lookers a significant presence in the used car supermarket sectorand is in line with the group's stated strategy of broadening its revenuestreams in the automotive industry. Ken Surgenor, Lookers chief executive, said: "We announced some time ago ourintention to strengthen our used car operations and the acquisition of BristolTrade Centre is the first step in that process. We believe Lookers shoulddevelop broad revenue streams from all sectors of the automotive industry,alongside the continuing development of our franchised car retailing business." Last year Lookers completed the purchase of FPS Distribution Ltd, the leadingwholesale distributor of vehicle parts to the UK automotive aftermarket. Bristol Trade Centre is a well established and successful operator in theindependent used car supermarket sector and has been trading for over 10 years.Lookers plc is paying approximately £8.5m for the trading name and assets of thebusiness from the current partners. The purchase includes the four acre site in St George, Bristol from whereBristol Trade Centre sells around 4000 used cars a year. The acquisition willadd around £35m to Lookers plc turnover and should be earnings enhancing fromthe outset. The newly acquired business will continue to trade under its existing name as aseparate division within Lookers plc. Senior operational management will remainin place. Mr Surgenor said: "Bristol Trade Centre is a well known and well respected brandin the region with over 250,000 satisfied customers. There is nothing to begained from changing the name. We will continue to develop our own UseDirectbrand when and where the right opportunity arises and it is already provingsuccessful in Northern Ireland and Scotland." Bristol Trade Centre has up to seven hundred used cars on display at any onetime. It specialises in affordable, high quality used cars in the traditionalthree-year old market with special offers on selected nearly-new vehicles. It isparticularly strong in the prestige used car market. Following the acquisition, it will also have access to several thousand vehicleswithin the enlarged Group. Cars undergo a 130-point safety and service check accredited by the RAC. Thecompany is a licensed credit broker, is approved under the recently introducedFSA regulations and offers a wide range of financial and insurance services,including a 'Buy & Drive Away Today' facility. MG Rover Lookers also announces that it has given two years notice in accordance with itsFranchise Agreement to exit from its four MG Rover outlets. Lookers will continue to work with MG Rover during this transition period toprotect the best interests of our mutual customers. Further information regarding this, together with the full results andpreliminary announcement will be released on 21 March 2005. -ends- For further information: Ken Surgenor, Lookers Chief Executive 0161 291 0043David Dyson, Lookers Finance Director 0161 291 0043James Hill, gcg hudson sandler 020 7796 4133 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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