Pendragon suitor Hedin Mobility Group has secured a foothold within the UK automobile dealership sector with the acquisition of 4 franchise factors from Mercedes-Benz Retail Group.
The Swedish enterprise confirmed this afternoon (November 24) that it had accomplished the acquisition of the German premium carmaker’s dealerships at its Brooklands Mercedes-Benz World operation in Weybridge, Surrey, together with Dartford, Croydon, and West Bromley.
It signifies that Hedin, which had its ‘put up or shut up’ deadline for takeover negotiations with AM100 PLC Pendragon prolonged this week, has secured a spot within the UK market sooner than many had anticipated.
The sale of its South London market space additionally completes Mercedes-Benz’s exit from the car retail sector – first announced in May last year – following Mercedes-Benz Retail Group disposals to Sytner Group, Sandown Motors and L&L Automotive.
Commenting on the acquisition as we speak, the founder and CEO of Hedin Mobility Group, Anders Hedin, stated: “By this acquisition, we take our first step into Europe’s second largest automobile market and set up a powerful foothold for additional development.
“We’re happy to increase with our core model Mercedes-Benz by way of the acquisition of those 4 dealerships, comprising the South London Market Space, and we stay up for welcoming the staff and clients of those 4 websites to Hedin Mobility Group.”
The 4 dealerships acquired by Hedin make use of a complete of roughly 360 folks.
Information of the transaction comes simply days after AM highlighted the scope for abroad funding within the UK automobile retail sector in a particular news insight report for the November edition of AM Magazine.
The mini finances of former Chancellor of the Exchequer was a part of a collection of financial triggers that weakened the worth of the pound and made the acquisition market seem extra interesting to abroad traders.
Earlier this month AM reported that Dubai-based franchised automobile retailer AW Rostamani Group, already a majority shareholder in Brayleys Vehicles, had broadened its UK footprint with the acquisition of nine West Way car retail sites from Nissan Motors GB.
Providing his perception within the recent AM Magazine feature, Alistair Cassels, head of automotive advisory at MHA, instructed AM the Hedin’s supply for Pendragon was additionally “beginning to look significantly good worth” following the latest foreign money fluctuations.
He acknowledged: “The supply amounted to circa £400m, which might have been round $580m lower than a yr in the past. At the moment that conversion stands at circa $460m or a 20% low cost.”
Cassels added: “Over the previous 5 years we’ve got seen quite a lot of abroad entrants, together with Motus, Tremendous Group and Group 1, and we all know there’s nonetheless a number of urge for food from these abroad companies to accumulate extra.
“As for different newcomers, like Hedin, some might need grown as a lot as they will of their house territory and be on the lookout for a brand new alternative. Others could possibly be seeking to take advantage of what’s – in some methods – fairly a beneficial local weather for M&A exercise.”