Acquisition of bodyshop chain

AIM: NARS

Nationwide Accident Repair Services plc

("Nationwide" or "the Group")

Announces

Acquisition of North West-based bodyshop chain, Howard Basford

Nationwide, the largest dedicated provider of automotive crash repair services in the UK, is pleased to announce that it has completed the acquisition of Howard Basford Ltd ("Howard Basford") through the acquisition of its holding company Auto Think Limited from its founding directors who will remain in the business. Howard Basford is a leading provider of crash repair services in the North West of England and the eighth largest independent bodyshop chain in the UK. The initial consideration for the acquisition is £4.1m in cash, with further contingent consideration of up to £1.75m, payable in cash and dependent on the attainment of certain performance criteria. The total consideration will be funded from the Group's own resources and the acquisition is anticipated to be earnings enhancing during 2014.

Based in the North West, Howard Basford operates eight bodyshops, at Accrington, Birkenhead, Crewe, Ellesmere Port, Liverpool, Manchester, Mold and Warrington, which provide automotive repair services to motor insurers, consumers and fleet operators. It also provides mobile repair and mobile tyre services. For the year ended 31 December 2012, Howard Basford generated revenues of approximately £16.0m and an operating profit of £0.5m. Its net assets stood at £1.4m at 31 December 2012. Unaudited management accounts for the year ended 31 December 2013 show a slightly improved performance over the prior year.

The addition of Howard Basford is highly complementary to Nationwide's existing operations and provides the Group with a significantly enhanced presence in the North West region, with the prospect of economies of scale and flow as well as other efficiencies. It also helps to increase Nationwide's presence in its target markets of insurance, fleet and retail.

Tracy Howard, Chairman of Howard Basford, said,

"The consolidation trend in our industry is becoming increasingly clear and we want to be at the heart of the coming changes. Nationwide is the long standing market leader and it is exciting to be able to share resources and further evolve customer propositions. Both organisations have built strong teams and this deal offers a new stimulus and we are looking forward to combining our strengths."

Michael Wilmshurst, Chief Executive of Nationwide, commented,

"I am delighted to announce the acquisition of Howard Basford and am particularly pleased to welcome the entire team, including the directors, to Nationwide. Howard Basford has an excellent reputation for quality, efficient vehicle repair services and shares our aspirations to deliver the highest standards in our industry. 

Most importantly, its addition enables us to jointly offer our customers an increasingly efficient and comprehensive service in the North West region and assists us in our objectives to build our presence in our three target markets of insurance, fleet and retail."

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About Nationwide Accident Repair Services plc

Nationwide provides automotive crash repair and accident administration services to the UK insurance industry, fleet operators and retail customers and is the largest dedicated provider of accident repair services in the UK.

The Group operates a national network of accident repair centres across England, Scotland and Wales and has dedicated mobile repair fleets which repair light damage and automotive glass. Other services include accident administration, courtesy cars and salvage management. All Nationwide's services are fully integrated and unified on a single IT platform, enabling the Group to provide market-leading standards.