US car giant increases offer for Pendragon dealerships
The US car giant, Lithia Motors, has decided to increase its offer for the acquisition of major UK car dealerships, Evans Halshaw and Stratstone.
Initially, Pendragon, a Nottingham-based company, had planned to sell these dealerships along with its CarStore business to Lithia Motors for £250m.
Alongside the acquisition, Pendragon also intended to partner with Lithia Motors to introduce its dealer management software, Pinewood, across Lithia’s 50 UK sites and North American operations, expecting an additional £30m in revenue.
However, Lithia Motors recently decided to significantly increase its offer to £397m, prompted by unsolicited bids from two other interested parties looking to acquire Pendragon’s UK business.