Japanese auto giant in strategic swoop for North West car supermarket
The UK arm of a Japanese car retail group has acquired a majority stake in Oldham-based HPL Motors Group.
Marubeni Auto Investment (UK) is a subsidiary of Marubeni Corporation (Tokyo), a 160-year-old Japanese trading company.
HPL owns three used car supermarkets in the North West, at Preston, Oldham and Atherton.
The acquisition means that HPL will join the Marubeni group of companies alongside RRG (Greater Manchester) and Norton Way (London and Hertfordshire).
The deal represents a significant move towards consolidation in the car retail market, which market analysts have been anticipating.
David Kendrick, of UHY Hacker Young (Manchester), who advised on the deal, said: “HPL has grown significantly in the North West over the past decade and this transaction not only allows the growth to continue with a much larger financial backer in Marubeni, but also a much larger pool of trade vehicles generated by the franchise retail outlets owned. A very strategic move.”
Jonathan Herman, founder of HPL, will retain a minority shareholding and will remain as managing director, continuing to build on the HPL heritage of the past 30 years.
He said: “I am excited to join the Marubeni family and can see how HPL will really complement the current Marubeni group structure. The synergies of being part of a leading UK automotive dealer group, means that we will be able to develop our combined businesses into incredible mobility provider for the future.”
Jason Cranswick, chief operating officer of Marubeni Auto Investment (UK), said: “Like all sectors globally, the automotive industry is experiencing rapid change and is embracing omni-channel retailing as part of its business strategy for a digital world.
“We have admired how Jonathan has evolved his business to become one of the UK’s best independent used car supermarkets. We feel that this acquisition will enable our wider group to innovate further and to deliver incredible customer experiences with long term shareholder value.”
RRG has 23 dealer businesses representing brands including Toyota, Lexus, Mazda, Kia, Peugeot, Skoda, Nissan, MG. Norton Way has 11 dealer businesses representing brands including Honda, Kia, Mazda, Peugeot, Nissan, MG, Honda Motorcycles, Carverse.
Manchester law firm Fieldfisher was lawyer to Marubeni on the deal.
