Vertu Motors makes first foray into Land Rover with acquisition

Vertu Motors has agreed to acquire the entire issued share capital of Albert Farnell from Co-operative Group Motors for 31m pounds.

Vertu Motors has agreed to acquire the entire issued share capital of Albert Farnell from Co-operative Group Motors for 31m pounds.

Farnell, which includes three Land Rover dealerships in West Yorkshire, will become a new division within Vertu.

Jatinder Aujla, the current Operations Manager at Farnell, will be appointed head of the division.

Farnell achieved total unaudited revenues of £113m and operating profit of £3.9m in 2012 and Vertu said it believes the acquisition will be earnings enhancing in the first full year of ownership.

Vertu is raising £50m before expenses though a placement of over 131m shares of 10p each at a price of 38p per share.

"We are very pleased to have received the support of existing and new shareholders for our capital raise, which both funds the acquisition and provides substantial equity funding that maintains our strong financial position and enables us to take greater advantage of acquisition opportunities to expand the group in the highly fragmented Premium and Volume segments of the market," said Chief Executive of Vertu, Robert Forrester.

Since the company was formed in 2006, it has grown to 96 sites and now sells close to 95,000 vehicles a year though its partnerships with motor manufacturers.

The acquisition of Farnell is Vertu's first entry into the British market of Land Rover.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020
The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020