Vertu Motors has acquired Helston Garages Group for of £120.1m.
The acquisition includes 28 franchised sales outlets, adding significant scale and geographic coverage to the Vertu’s existing footprint of 160 franchised outlets.
In the year ended 31 December 2021, the acquired dealerships generated revenues of £498.9m.
Vertu said that the acquisition is a continuation of the long-term strategy of the Group to “drive scale, expand into new and attractive regions and introduce new Manufacturer Partners”.
Helston will enhance the its scale and reach into the South West of England. Following the acquisition, Vertu will have 32 sales outlets in the region, up from the current four.
The acquisition will see Volvo and Ferrari join the Manufacturers represented by Vertu.
The first full year of contribution from the acquisition will be FY24 (to 28 February 2024).
Robert Forrester, chief executive officer of Vertu Motors, said: “We are delighted that Vertu Motors has agreed to acquire Helston and 28 dealerships, further evidence of the execution of our long-term strategy to build scale, geographic coverage and deepen our relationships with our key automotive Manufacturers. We are particularly pleased that we have received strong support for the acquisition from our Manufacturer Partners and our lending banks to support the deal. Volvo and Ferrari are introduced to our portfolio, which is a very proud moment for the Group.
“Helston has a long track record of delivering strong profitability and we have admired the Group for a long time. The acquisition will be both financially and strategically accretive for Vertu Motors, delivering long term value creation for our shareholders. We now have 32 dealerships in the South West, which becomes a core region.
“I am delighted to welcome so many new colleagues to the Group and look forward to integrating Helston and the team into Vertu Motors, particularly introducing our digital expertise.
“While there is uncertainty in the UK economy today, we continue to invest for the long-term and remain excited about the future for Vertu Motors.”