# Vertu Motors Purchase four Volkswagen Passenger car dealerships in West Yorkshire

- Link: https://www.directorstalkinterviews.com/vertu-motors-purchase-four-volkswagen-passenger-car-dealerships-in-west-yorkshire/412802969
- Published: 2020-01-16T07:05:25+00:00
- Author: Giles Arbor

**Volkswagen Acquisition**

**Vertu Motors plc** (LON: VTU), the automotive retailer across the UK, has announced
the acquisition of the trade and assets of four Volkswagen Passenger car dealerships
in West Yorkshire from Goodman Retail Limited, a trading subsidiary of Sytner Group
Limited. Total consideration is expected to be approximately £8.8m, and the Board
expects the acquisition to be earnings enhancing in the first full year of ownership,
the year ending 28 February 2021.

The purchase of four substantial Volkswagen leasehold dealerships in Leeds, Huddersfield,
Harrogate and Skipton represents further expansion of the Group’s Vertu Volkswagen
brand and complements the Group’s existing 13 outlets in Yorkshire comprising the
Nissan, Renault, Jaguar, Land Rover, Vauxhall and Honda brands.

After the acquisition, the Group will operate a total of 9 Volkswagen Passenger 
car dealerships.

Total estimated consideration includes a payment of £1.35m in respect of goodwill.
The consideration has been settled in cash from the Group’s existing resources. 
For the year ended 31 December 2018 the combined management accounts of the dealerships
acquired showed that they achieved revenues of £112m and a profit before tax of 
£0.6m.

**Other portfolio changes**

On 20 December 2019 the Group exited the Volvo franchise in Derby with the business
being transferred to a subsidiary of Marshall Motor Holdings plc. The premises were
retained by the Group and are currently being refurbished with a new franchise operation
due to commence in the coming months.

In January 2020, the Group has opened two new franchise outlets for Hyundai in the
North East of England. Hyundai has started trading at Silverlink, North Tyneside
in the Group’s former Infiniti dealership. In addition, Hyundai has been added to
the existing Ford and Honda operation in Morpeth, Northumberland. This adds to the
Group’s existing Hyundai representation in the adjacent territories of Peterlee 
and Edinburgh. This brings the number of Hyundai outlets operated by the Group to
10 and indeed the Group are now one of this Manufacturer’s largest UK partners.

> **Robert Forrester, CEO of Vertu Motors said:**
> “We are delighted with these changes to our portfolio, especially the Volkswagen
> acquisition. The addition of these excellent dealerships augments the Group’s 
> representation of the Volkswagen brand and expands our operational footprint in
> Yorkshire.
> These portfolio changes reflect the Group’s strategy to continue to grow a significantly
> scaled franchised dealership business built on the back of a strong balance sheet,
> scalable operational systems and excellent relationships with its Manufacturer
> partners.”

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