Thames Valley: Clarkslegal advises Eden Automotive Investments on its latest acquisition

Law firm Clarkslegal has advised Eden Automotive Investments (part of the Eden Motor group) in its purchase of Alan Gibson, a multi-motor dealership based in Basingstoke. 

This is the fourth acquisition in the past 24 months which Reading-based Clarkslegal has handled for Eden, working closely with the management as the group continues its strategy of growth through acquisition.

Spearheaded by the dynamic and experienced former managing director of Inchcape plc (in the UK, Europe and Latin America), Graeme Potts, Eden continues to buck the economic trend of the automotive industry, expanding across the south of England with operations now in Basingstoke, Bracknell, Branksome, Camberley, Christchurch, Exeter, Fareham, Honiton, Newbury and Reading. Following the most recent acquisition, Eden welcomes Fiat, Mazda, Hyundai and Alfa Romeo brands to it portfolio, which already boasts Vauxhall, Chevrolet and Saab.

Graeme Potts paid tribute Clarkslegal’s support throughout the transaction: “The scale of the business should have made for a very straightforward transaction but the complexity of the share purchase of the company from multiple long-term shareholders heading into retirement resulted in numerous issues arriving which the vendors struggled to appreciate.

"Throughout this process, as we have experienced in all our previous engagements with Clarkslegal, our team demonstrated pace, focus, tenacity and patience combined with a determination to get this ‘over the line’ whilst assiduously protecting their client’s interests. They have also demonstrated a keenness to truly get to know us and our business, which as clients is very re-assuring.”

The deal was structured as part cash and part secured loan notes, with Eden looking to minimise its up-front risk. Headed by corporate partner, Ashan Arif, Clarkslegal was involved from the early stages of the deal, assisting with the heads of terms and undertaking legal and commercial due diligence (with particular focus on commercial, property, employment and environmental issues). The deal was completed within four weeks of the heads of terms being entered into.

Arif commented: “I am very pleased that we continue to work closely with Eden on its exciting growth strategy. My team demonstrated skill, knowledge and a real determination to deliver on Eden’s key objectives. Negotiations were quite tricky at times and the timescale was very tight. However, I am delighted that yet again my team have achieved a very satisfying result for the client.”

Clarkslegal worked with Grant Thornton, who advised on tax and finance.