Vertu Motors has added its first Ferrari supercar and Volvo dealerships to its automobile retail portfolio via the £117 million acquisition of Helston Garages.
The AM100 PLC confirmed the completion of its deal to snap-up the rest of the 40-site, £627m turnover enterprise following its not too long ago introduced disposal of 11 Volkswagen Group dealerships to Yeomans and the Porsche Centre Exeter to Rybrook.
In complete, Vertu has acquired 28 franchised gross sales retailers, with OEMs BMW/Mini, Ferrari, Jaguar Land Rover, Peugeot and Volvo in a transfer which additionally provides important scale and geographic protection of the South West to the group’s present footprint of 160 retailers.
Vertu chief government Robert Forrester, who not too long ago advised AM his was well-positioned to grow “anywhere at any time” after its H1 2022 buying and selling replace, mentioned that the acquisiton additional demonstrated a “long-term technique to construct scale, geographic protection and deepen {our relationships} with our key automotive producers”.
He added: “We’re significantly happy that now we have acquired sturdy assist for the acquisition from our producer companions and our lending banks to assist the deal.
“Volvo and Ferrari are launched to our portfolio, which is a really proud second for the group.”
An announcement issued by Vertu Motors by way of the London Inventory Change this morning (December 8) acknowledged that the Helston acquisition is anticipated to be “double digit EPS accretive” for its monetary yr to February 28, 2024.
Within the yr ended December 31, 2021, the acquired dealerships generated revenues of £498.9m, alongside underlying EBITDA and underlying pre-tax revenue of £20.6m and £17.9m, respectively.
Forrester added: “Helston has a protracted observe document of delivering sturdy profitability and now we have admired the group for a very long time.
“The acquisition can be each financially and strategically accretive for Vertu Motors, delivering long run worth creation for our shareholders.
“We now have 32 dealerships within the South West, which turns into a core area.”
Helston has been a household run enterprise for over 60 years, working dealerships throughout Dorset, Somerset, Devon and Cornwall below dealership manufacturers Westerly, Carrs and Truscotts in addition to its Helston identify.
Vertu mentioned that its acquisition of Helston was “freehold wealthy”, with a well-invested property portfolio valued at £66.7m.
The deal can be financed via not too long ago renegotiated and new debt services now supported by a 3rd lending financial institution.
This financial institution syndicate prolonged the prevailing Revolving Credit score Facility to £93m from £62m (because of expire in February 2024), Vertu mentioned.
A special news insight feature in the latest edition of AM Magazine explored the automobile retail sector’s latest M&A exercise and the outlook for future important acquisitions.
Since then, the sector has seen a trio of Helston Garages disposals, Hedin Group’s acquisition of four Mercedes-Benz dealerships from Mercedes-Benz Retail Group and Arnold Clark’s failed attempt to acquire Cars2.
Commenting on the financial outlook, for the sector at this time, Forrester mentioned: “Whereas there may be uncertainty within the UK financial system at this time, we proceed to speculate for the long-term and stay excited in regards to the future for Vertu Motors.”
David Kendrick, companion at UHY Hacker Younger, who suggested Helston Garages on its disposal, mentioned: “Having labored on this deal for over 9 months, advising Helston shareholders, it is a aid to get this concluded.
“A unbelievable busness that has been bought to a few completely different events with vertu gfinally taking the big remaining elelment in a transaction amounting to over £185m, together with money – making it our largest deal so far.
“I must say an enormous thankyou to the UHY automotive group and congratulations to each the Helston shareholders and to Vertu Motors.”
