Automotive retail group Vertu has continued its growth with the acquisition of a motorbike dealership.
The Gateshead-based firm has announced the £4.2m acquisition of two BMW Motorrad outlets in Yorkshire, taking its estate of motorcycle dealerships to six. The sites bought from the Saltaire Motor Company in Shipley and Rotherham, which have traded under the Allan Jefferies name, will be rebranded to trade as Vertu.
Vertu is one of the country’s largest car retailers with a network of 164 sales and aftersales sites around the UK. It said the new businesses would initially make a loss due to the seasonality of motorbike sales, but was expected to be earnings enhancing in its first full year.
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Vertu currently operates an outlet for BMW Motorrad - the motorcycle brand of BMW - in Sunderland. Today’s deal will make Vertu the brand’s largest operator in the UK.
Robert Forrester, CEO of Vertu Motors, said: “Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically to the group. Vertu becomes the largest partner in the UK for BMW Motorrad.”
Paulo Alves, head of BMW Motorrad UK and Ireland, added: “We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu. The Jefferies family have built a fantastic operation and we are confident that the business will be in good hands. As a leading brand, our customers take priority and we share this philosophy with Vertu. We welcome them as our largest partner in the UK.”
Vertu said that the acquired business had revenue of £20.5m and an operating profit of £463,000 in its latest year. Total consideration for the deal is estimated at £4.2m, subject to finalisation of completion accounts, including a freehold property value of £1.85m and goodwill of £500,000.
The deal will be funded from Vertu’s existing cash resources.
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