Vertu Motors buys in Cumbria

VERTU Motors, the AIM listed car dealership group, has extended its footprint in the North West with an acquisition in Cumbria.

The Newcastle-based group is paying £4.3m in cash for Dobies (Carlisle) Ltd, which traded as Vauxhall and SEAT outlets from a location next to junction 44 of the M6 to the north of the city.

As part of the deal, the vendor, has agreed to buy £2m worth of Vertu’s shares at 39p per share and not sell them for a year.

Following the acquisition, Vertu now has 13 Vauxhall outlets and four SEAT outlets.

For the year ended 31 December 2012 the management accounts of the acquired businesses showed a turnover of £10.7m and an operating loss of £100,000.

Robert Forrester, chief executive of Vertu Motors said: “”This acquisition extends the Group’s operations across the north of England and into Cumbria for the first time.

“These two outlets complement the Group’s existing businesses in the north of England, and in particular its Vauxhall operations in Newcastle, Hexham and Durham which are adjacent to the acquired territory.  The additional SEAT outlet extends further the Group’s relationship with the Volkswagen Group.

“The Group continues to be active in identifying additional growth opportunities as it seeks to develop a scaled automotive retail operation in the UK. The group is now the seventh largest automotive retailer measured by revenue.”