A Canadian dealer group Alpha Auto Group through a bidding vehicle Bidco has tabled a £465m bid for dealer group Lookers.
AAG describes itself as a leading operator and consolidator of car dealerships with 15 large scale new vehicle dealerships across Canada and the United States. It is one of the largest auto retailers based in Canada.
On its website AAG describes its acquisition strategy. “AAG is well funded, can quickly close transactions and has the scale and infrastructure to ensure the continued growth your store or group.
“If you are a dealership owner contemplating sale as part of your succession planning, seeking external capital for growth or otherwise interested in selling all or a part of your operations, we would welcome the opportunity to speak with you.
If successful the deal should go ahead in Q3 or early Q4.
Mark Raban, chief Executive Officer of Lookers, said “Today’s offer reflects the transformational progress that has been made in recent years. We have harnessed our strong market position, enhanced our brand relationships, and executed well against our six strategic priorities.
“I am excited about the combination with Bidco. It will create a business of greater scale, and bring together two successful businesses with complementary OEM relationships, and a strong platform to support future growth in the UK.”
Paul Van der Burgh, Interim Chairman of Lookers, said: “The significant financial and operational progress made by Lookers in recent years demonstrates Lookers’ ability to deliver excellent and sustainable value for our stakeholders. After a period of extensive engagement between the parties, the Offer represents an attractive opportunity for our shareholders to realise cash now for their investment at a significant premium to the prevailing share price.
“We have spent considerable time reviewing the potential impact of Bidco’s ownership on Lookers’ wider stakeholders and are confident that the commitments given by them will protect stakeholder interests. Bidco has clearly outlined its commitment to continue supporting our customers, operations, communities, and most importantly our talented and committed people.”