Lookers sells parts business for £120m
MANCHESTER-based car dealer group Lookers is to dispose of its parts business to Alliance Automotive UK for £120m, as it focuses on the acquisition of other premium dealerships.
The Parts Division is a distributor of automotive parts for brands including BTN Turbo, FPS and Apec Braking. It generated sales of £218.8m and underlying operating profit of £12.6m and had gross assets of £155.7m for the year to the end of December 2015.
Alliance Automotive is part of Alliance Automotive Group, a major European distributor of automotive and commercial vehicle parts to the automotive aftermarket.
Neil Davis, the managing director of parts and a director of Lookers, will remain with the Parts Division under Alliance Automotive’s ownership and as such will no longer be a director upon completion of the transaction.
Lookers says it believes the deal will enable it to create greater value for its shareholders with the proceeds also used to pursue acquisitions in the group’s motor division.
The group is in the advanced stages of negotiation on the acquisition of two premium-branded car dealership businesses.
Lookers’ chief executive Andy Bruce said: “I am pleased to announce this conditional agreement which the board believes is in the best interest of shareholders.
“The offer from Alliance Automotive is an attractive one and will enable us to focus on what we do best; buying and selling cars, and adding value through acquisitions.
“We are already at advanced stages of negotiation on the acquisitions of two premium-branded car dealership businesses and hope to make further announcements on these in the coming weeks.
“I would also like to thank our colleagues in our Parts Division for their contribution to the wider Lookers business.”
The transaction is expected to be complete by the end of October.
