Ford dealer Gordons sold for £11m
BOLTON-based Ford dealership Gordons has been acquired by AIM-listed Vertu Motors.
It is paying £11m in cash for the assets which include freehold properties worth nearly £7m.
Gordons, owned by the Seymour family, has been representing Ford in Lancashire since 1911 and now has 218 staff. The business started out by making horse drawn carriages.
The Vertu deal includes two main dealerships in Bolton and Wigan and two satellite operations in Walkden, Salford, and Horwich, near Bolton. There is also a plot in Wigan where a new dealership will be developed in the next six months.
In the year to December, 2013, Gordons made an operating profit of £300,000 on revenues of £76.7m. The deal increases Vertu’s Ford outlets to 22, making it the manufacturer’s third largest dealer in the UK.
Robert Forrester, chief executive of Gateshead-based Vertu, said: “The board is delighted to announce the acquisition of this well established business in Lancashire, which will provide further scale to the group’s Bristol Street Motors Ford business.
“We are pleased to welcome over 200 new colleagues into the Group who bring with them a wealth of experience in the Ford brand. This acquisition also brings with it some substantial freehold property assets which the Group will actively manage to enhance shareholder value.”
David Kendrick, a partner in UHY Hacker Young’s automotive team in Manchester, said: “Gordon’s of Bolton is a well-established and respected North West dealer group and this acquisition is a great coup for Vertu who continue to add to their portfolio. In recent weeks we have seen two large Ford groups being acquired with hugely varying goodwill multiples which highlights the fact that every opportunity is valued differently.
“We are seeing increased activity with a number of businesses now looking at an exit as the consolidation continues. 2015 will see more consolidation and it will be interesting to see if the high valuations remain with certain business and franchises commanding large premiums.”
