Vertu drives away with Lancs car dealerships

LISTED car dealership group Vertu Motors has bought independent Lancashire-based business Hillendale Group in an £8.2m deal.

Nelson-based Hillendale, owned by Lee Collins since a management buyout in 2006, has 65 staff and operates a Land Rover dealership in its hometown and a Jaguar site in Bolton.

For the year ended December 31 2013, it generated EBITDA of £1m on turnover of £34.9m.
 
Newcastle-based Vertu Motors is paying £6m in cash and issuing 3.4 million shares worth £2m to the vendor ,who has undertaken not to sell for 12 months.

Chief executive Robert Forrester said: “We are delighted to announce the next step in our growth with Jaguar Land Rover and our entry into the Jaguar franchise.

“Land Rover remains one of the most attractive franchises from the perspective of the motor retailer, and we are very pleased to extend the reach of the group’s highly successful businesses in Leeds, Guiseley and Bradford into Lancashire.

“The Jaguar franchise is set to see substantial new product flow in the next few years following significant product development investment by Jaguar Land Rover. The group is therefore looking forward to partnering with this exciting British-built brand.”