Vertu Motors has bought BMW and MINI dealerships located in York, Sunderland, Teesside, Durham and Malton from Inchcape. The £18.7m deal also included a BMW Motorrad motorcycle operation in Sunderland and a used car operation located in York.
The assets acquired include £16m of freehold and long leasehold properties and a payment in respect of goodwill of £0.8m.
For the year ended 31 December 2019, the business achieved revenues of £305m and a loss before tax of £6m. A new management team, with BMW and MINI franchise experience, has been hired and will be integrated with existing Vertu operational management. Vertu’s systems and processes are being implemented and the business will be rebranded.
The acquisition is expected to be at least earnings neutral by the year ending 28 February 2023
In an update Vertu said it had a record September. For the nine months to 30 November, the group is now trading approximately 15% above last year at an adjusted PBT level, despite the impact of the second lockdown in England.
But it said it was uncertain whether the financial performance for the remainder of the financial year will continue at the same level with the potential impact of further COVID-19 restrictions and the impact of Brexit.
Robert Forrester (pictured) , CEO of Vertu Motors said: “We are delighted to announce the introduction of the much sought after BMW, MINI and Motorrad franchises to the group, previously a gap in our portfolio of manufacturer partners.
“The addition of these franchises has long been a strategic objective of the group. The acquisition achieves immediate scale in a region where the group is headquartered and already has strong representation.
“The business has previously performed at a high level and it is our intention to ensure that it returns to this previous success delivering both for customers and financially.
“As the group enters its 15th year of trading, this acquisition reflects a further milestone in both its scale and maturity.”
Graeme Grieve, CEO for BMW Group UK and Ireland, said: “Vertu has been working with BMW Group over a number of years as a potential partner and we are delighted to be able to bring their professionalism and energy into our retailer network.
“We very much look forward to working closely with Vertu, to ensure customers in the North East and Yorkshire have an excellent customer experience with our brands and gain from the substantial investment we have made in electric powertrains as the UK accelerates its transition to zero carbon in new vehicles.”