BMW bike outlets acquired by Vertu Motors
Vertu Motors has acquired two BMW Motorrad outlets from Saltaire Motor Company, the automotive retail chain announced to the London Stock Exchange this morning.
The outlewts, in Shipley and Rotherham, will be rebranded under the Vertu brand and become part of the Vertu Motorcycle Division, which will operate six motorbike outlets.
Robert Forrester, CEO of Vertu Motors, commented: “Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically to the Group. Vertu becomes the largest partner in the UK for BMW Motorrad.”
Paulo Alves, Head of BMW Motorrad UK and Ireland, commented: “We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu. The Jefferies family have built a fantastic operation and we are confident that the business will be in good hands. As a leading brand, our customers take priority and we share this philosophy with Vertu. We welcome them as our largest partner in the UK.”
For the year ended 29 September 2021, the two acquired outlets had revenue of £20.5m and an operating profit of £463,000. Total consideration is estimated at £4.2m, subject to finalisation of completion accounts. The consideration includes a freehold property value of £1.85m and a payment in respect of goodwill of £0.5m. This consideration will be paid from the Group’s existing cash resources. Due to the seasonality of motorcycle sales, the Business is expected to contribute a small loss for the remaining four months of the financial year and is expected to be earnings enhancing in its first full year of ownership.
BMW Motorrad is the motorcycles brand of BMW Group. In the full year 2021, it was the UK market leader in the ‘big bikes’ category with a 16.6% market share. Vertu currently operates one Motorrad outlet in Sunderland which it acquired in 2020; adding the acquired two further outlets will make Vertu the largest partner in the UK for BMW Motorrad.
