OFT investigation costs JCT600 £300k
JCT600 has revealed that the investigation by the Office of Fair Trading (OFT) following its acquisition of Gilder Group cost the firm £300,000.
JCT600 bought £200m turnover Sheffield-based Gilder Group for an undisclosed eight figure sum on March 1 this year and following the deal, it was approached by the OFT, which has the authority to investigate mergers and acquisitions in the UK. However, in August, the OFT said it would not be referring the case to the Competition Commission.
Bradford-based JCT600 said the £300,000 figure includes legal fees and a £160,000 bill from the OFT.
John Tordoff, chief executive of JCT600, said: “The OFT investigation knocked us for six. It was an incredibly expensive and frustrating exercise.
“We bought Gilder Group on March 1 and by the end of March, we had the OFT investigating us, so we couldn’t do anything to integrate it into the group. We had to sit on our hands for five months and not really do anything, so it was a massive frustration.”
The deal included nine of Gilder Group’s car and commercial vehicle dealerships taking JCT600’s total to 47 and increasing staff numbers by 450 to 1,800.
Today, JCT600 said it has now launched an “ambitious” roll out plan for the Gilder Group.The business said it has invested in computer systems and resources and Tordoff said that in the next 12 to 24 months, the group wants to see the Gilder Group integrated into the business.
He said: “The JCT600 group grew by 20% over night when we bought Gilder. It was by far the biggest acquisition we have ever done.
“It is an old business with a lot of heritage and culture. We have got solid foundations and have invested in the business and given the resources that are needed to be successful. We are seeing positive signs coming out of the business.”
Tordoff said that JCT600 is not actively looking for acquisitions now, but if the opportunity came up, it could make another deal.
The business said the directors are confident the dealerships within the Gilder Group have the capacity to be “strongly profitable”.
Tordoff said: “The economy is growing and consumer confidence is coming back, so we are hoping to ride on the back of that over the next few years. It is looking positive.
“This year Gilder Group hasn’t really added to the bottom line but next year we are expecting to see good results.
“JCT600 is in great shape going forward. We have survived the turbulent times and have come out fitter and stronger and are now looking forward to enjoying the next year.”
