Vertu Motors has acquired Burrows Motors for £12.5m, strengthening its relationship with Toyota, Mazda and Kia.
Vertu’s partnership with Toyota grows from six to 11 outlets, Mazda from two to four and Kia from three to four.
Burrows Motor Company turned in pre-tax profits of £106,000 in 2023 compared to £3m the prior year on turnover of £168.9m (2022: £171.9m).
The acquisition increases Vertu brand presence in Yorkshire and Nottinghamshire, adding outlets in Barnsley, Doncaster, Rotherham, Sheffield, York and Worksop.
All outlets will be rebranded Vertu in line in line with its recently announced rebranding strategy.
Robert Forrester, CEO of Vertu Motors, said: “We have long admired the Burrows business and are delighted 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.”
The deal includes £17.6m in respect of freehold properties and a £4m goodwill payment.
Vertu as taken on Burrows debts of £10.5m OEM backed mortgage funding and used car stocking loans.