National vehicle retailer swoops for family-owned motor dealerships group
Vertu Motors, a vehicle retailer with 202 sales and aftersales outlets across the UK, has acquired the entire issued share capital of Burrows Motor Company.
It says this deal is funded by existing cash and borrowing facilities.
Burrows is a family-owned group of dealerships operating five Toyota dealerships, two Mazda dealerships and one Kia dealership.
The acquisition significantly increases Vertu brand presence in Yorkshire and Nottinghamshire adding outlets in Barnsley (2), Doncaster, Rotherham, Sheffield (3), York and Worksop.
All outlets will be rebranded Vertu and integrated into the Vertu systems platform in the coming weeks.
Robert Forrester, CEO of Vertu Motors, said: “We have long admired the Burrows business and are pleased to have completed this acquisition creating further scale for the group with key Manufacturer Partners.
“The acquisition of Burrows gives us considerable scale in our partnership with Toyota and strengthens the Vertu brand in Yorkshire and Nottinghamshire.
“This is in line with our strategy to actively pursue value accretive growth opportunities to enhance our portfolio, applying strict investment return metrics as well as returning cash to shareholders.”
For the year ended 31 December 2023, Burrows Motor Company achieved revenue of £168.9m and an operating profit of £1.4m.
Consideration, net of cash acquired, is estimated at £12.5m, subject to finalisation of completion accounts, with £1m of the consideration deferred for 12 months.
The consideration includes £17.6m in respect of freehold properties and a payment in respect of goodwill of £4m.
In addition, Vertu Motors has taken on Burrows’ indebtedness of approximately £10.5m which comprises freehold property backed mortgage funding provided by a manufacturer and used car stocking loans.
