3rd Oct 2007 07:01
Lookers PLC03 October 2007 3 October 2007 Lookers plc Acquisition of Dutton Forshaw Group Limited by Lookers from Lloyds TSB Asset Finance Division Limited Lookers plc ("Lookers"), one of the UK's leading motor retail groups, is pleasedto announce the acquisition of the entire issued share capital of Dutton ForshawGroup Limited ("Dutton Forshaw"), the motor retail division of Lloyds TSB AssetFinance Division Limited ("Lloyds TSB") for a total consideration of up to £60million, payable in cash on completion. This comprises a payment ofapproximately £28 million for the entire issued share capital of Dutton Forshawand the assumption of a maximum of £32 million of debt. The acquisition is a Class 2 transaction for Lookers under the Listing Rules andis expected to complete on 26 October 2007. In the financial year to 31 December 2006, Dutton Forshaw generated sales of£431 million, reported an operating profit of £3 million and had gross assets of£129 million. Lookers expects to retain the vast majority of employees of Dutton Forshaw. Dutton Forshaw comprises 31 outlets operating under the Dutton Forshaw andDovercourt brands and its acquisition is in line with the Lookers strategy toexpand the existing market areas in which it already operates with preferredmanufacturers. The acquisition will increase the Group's number of Ford outletsfrom one to eight, Mercedes-Benz outlets from four to eight and VW outlets fromfive to nine. Other outlets acquired include Chevrolet, Chrysler Jeep and Dodge,Citroen, Honda, Hyundai, Land Rover, Peugeot and Skoda. In particular, the acquisition will strengthen Lookers' presence in the SouthEast and North West of England, and provide a foothold in South Wales. Commenting on the acquisition, Ken Surgenor, Chief Executive of Lookers plcsaid: "This acquisition provides Lookers with an ideal opportunity to broaden ourgeographical spread and to deepen our relationships with our manufacturerpartners, including our newer partners Ford and Mercedes-Benz. "We are delighted to have acquired such high quality dealerships which we expectwill be earnings enhancing in our first full year of ownership and we remainfocused on growing Lookers organically and by acquisition." For further information: Lookers plc Telephone: 0161 291 0043Ken Surgenor, Chief ExecutiveDavid Dyson, Finance Director NM Rothschild & Sons Limited Telephone: 0161 827 3800Richard Bailey Hudson Sandler Telephone: 020 7796 4133Andrew Hayes / Nick Lyon / Kate Hough This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LOOK.L