Vertu Motors acquires Hereford-based Audi franchise
VERTU Motors, which started out in Birmingham as Bristol Street Motors, has introduced Audi as a new franchise after taking over Hereford-based SHG Holdings for £12.8m..
Vertu, which has a network of 121 sales and aftersales outlets across the UK, has acquired the entire share capital of SHG which operates established Audi, Volkswagen Passenger Cars and Volkswagen Commercials outlets in Hereford.
The acquisition introduces Audi to the group as a new franchise. Volkswagen Commercials is also introduced to the group for the first time.
In addition to the three outlets representing Audi, Volkswagen passenger cars and Volkswagen commercials in Hereford, the business also includes two Volkswagen Group parts distribution operations in Gloucester and Hereford and a used car and aftersales facility in South Herefordshire.
On top of the £12.8m purchase price, a further consideration of £1.5m is to be deferred for two years and will be payable under certain conditions.
For the year ended 31 December 2014 South Hereford showed revenues of £77.5m, EBITDA of £2m, profits before tax of £1.5m and net assets of £4.3m.
Vertu’s board expects this acquisition to be earnings enhancing in its first full year of ownership.
Robert Forrester, CEO of Vertu Motors said: “We are delighted to announce the introduction of Audi to the Group, which is a further step in the growth of our premium business, following the success of the Farnell acquisition and our subsequent profitable growth with Jaguar Land Rover.
“This is an example of the long-term approach we take to investing in the future success of the group.
“The acquisition will be earnings enhancing and South Hereford is a strong business with a great local heritage, a reputation for excellent customer service and a strong aftersales track record.
“Volkswagen Commercials will provide synergy opportunities with existing Vertu operations such as Bristol Street Versa, Taxi Centre and group fleet operations.”
Midlands law firm Harrison Clark Rickerbys led on the deal. KPMG also advised.
