Lookers acquires first BMW and MINI dealer group for £27.2m
MANCHESTER-based motor trader Lookers has acquired BMW and MINI specialist Knights North West for £27.2m in cash.
The deal introduces the two car brands to the company’s portfolio for the first time, and further expands its motor division in the West Midlands.
The acquisition is being funded from the company’s existing bank facilities.
Knights Group is an experienced retailer of BMW and MINI models across the West Midlands, with six dealerships in Stafford, Stoke-on-Trent and Crewe.
With a particular focus on service and customer commitment, Knights Group complements Lookers’ strategy of improving the motor retail environment. The acquisition brings the total number of Lookers dealerships to 166.
Lookers says the addition of two premium brands to its portfolio is expected to increase customer penetration.
Both BMW and MINI continue to increase in popularity in the UK with BMW reporting increased sales by 12% in 2015 compared to 2014, a UK record sales year.
MINI also produced a record year with an 18% increase in sales on the previous year. The BMW Group achieves a market share of 8.7% of the total UK car market in 2015 (BMW 6.3% and MINI 2.4%).
The addition of Knights Group follows the conditional purchase of the Drayton Group announced on August 15, which on completion will add seven Mercedes-Benz dealerships in the West Midlands.
Together, these acquisitions substantiate the group’s strategy of accelerating growth in the motor division following the proposed disposal of its parts business, announced on 10 August 2016.
The statutory accounts for Knights Group for the year ended December 3212015 reported turnover of £213.3m and pre-tax of £1.9m.
Knights Group had gross assets of £70.3m and net assets of £6.0m.
Andy Bruce, chief executive of Lookers, said: “We are delighted to welcome the Knights team to the Group and are excited to be adding the iconic brands of BMW and MINI to our list of premium marques, offering our customers a wider choice of vehicles.
“This marks another significant addition to Lookers and demonstrates our focus and commitment on expanding the motor division following the sale of our parts business.
“We continue to see opportunity in the prestige car market as demand increases amongst the UK’s discerning motorists, and have no doubt that the BMW and MINI dealerships will continue to thrive as part of Lookers.
“We believe Knights fits with our key business priority of delivering an even better customer experience; this is a business which we have much admired for its financial and cultural success, and we are excited to be working in partnership with the Knights team to deliver more of what our customers want.”
Adam McGiveron, partner at Shakespeare Martineau and who advised Knights North West on all legal aspects of the sale, said: “This deal reflects confidence in the market place and demonstrates the continued demands for premium European brands, such as BMW. This demonstrates that transactions are still being done in the region and assets are available for the right deals.
“Managing any sale process can be challenging, but by building a strong rapport with the sellers we were given the opportunity to provide legal and commercial counsel to the team at Knights North West that ensured the smooth sale of the business.
“It has been great to be involved in a deal like this for a leading business in its field and has been extremely rewarding for the team at Shakespeare Martineau.”
