There's Vertu in the eye of the beholder as Helston Garages sells to automotive group
Following our report last month that leading automotive retail group Vertu Motors plc was in discussions to buy South West dealership Helston Garages Group Limited, Vertu has confirmed this morning that a deal has been agreed. subject to FCA regulatory approval.
Vertu has paid just over £120 million to acquire 28 franchised sales outlets, adding significant scale and geographic coverage to the Group's existing footprint of 160 franchised outlets.
The deal has been financed through a combination of re-negotiated and new debt facilities.
Vertu said that the acquisition of Helston represents nearly seven times the EBITA of the acquired dealerships and will transform its footprint in the South West. Helston also has a freehold rich, well invested property portfolio valued at £66.7 million said Vertu in a statement this morning.
Following the acquisition, Vertu will have 32 sales outlets in the region, up from the current four.
Robert Forrester, Chief Executive Officer of Vertu Motors, said: “We are delighted that Vertu Motors has agreed to acquire Helston and 28 dealerships, further evidence of the execution of our long-term strategy to build scale, geographic coverage and deepen our relationships with our key automotive Manufacturers. We are particularly pleased that we have received strong support for the acquisition from our Manufacturer Partners and our lending banks to support the deal. Volvo and Ferrari are introduced to our portfolio, which is a very proud moment for the Group.
"Helston has a long track record of delivering strong profitability and we have admired the Group for a long time. The acquisition will be both financially and strategically accretive for Vertu Motors, delivering long term value creation for our shareholders. We now have 32 dealerships in the South West, which becomes a core region.
"I am delighted to welcome so many new colleagues to the Group and look forward to integrating Helston and the team into Vertu Motors, particularly introducing our digital expertise.
"While there is uncertainty in the UK economy today, we continue to invest for the long-term and remain excited about the future for Vertu Motors.”
Helston has been a family run business for more than 60 years, building up a network of high-quality dealerships across Dorset, Somerset, Devon and Cornwall, operating under several brands including Westerly, Carrs and Truscotts.
The Vertu Motors Group's franchised motor dealerships offer sales, servicing, parts and bodyshop facilities for new and used cars and commercial vehicles. These dealerships fall under the trading names Vertu Motors, Bristol Street Motors (which it bought in 2007) and Macklin Motors.
In October, Vertu Motors revealed profit before tax of £28.2 million on revenue of nearly £2 billion. New and used car margins helped to boost the group’s results, despite supply issues.
Bristol Street Motors originated over 100 years ago as a single Ford dealership located on Bristol Street in central Birmingham. It has since expanded to become a nationally recognised brand, which represents some of the world’s most popular automotive manufacturers.
In 2010, Vertu Motors expanded into Scotland, where it trades under the Macklin Motors brand.
