Vertu bags Co-op Motors' sites

Car dealership group Vertu has bought three Co-op Motors sites in a deal worth 5.5m sterling.

The sites add a further six franchise outlets to Vertu's portfolio, with Nissan and Fiat in Derby, Nissan and Peugeot in Ilkeston and Nissan and Renault in Bradford.

In the year to the end of December, the businesses showed a turnover of £113m and a break-even operating result before interest and tax. The dealerships are expected to be earnings neutral in the current financial year and earnings enhancing in the year to February 2014.

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Of the £5.5m purchase price, £3.9m is deferred over three years.

Vertu currently operates a network of 88 sales and aftersales outlets.

The group's Chief Executive Robert Forrester said: "We are pleased to have acquired a further six sales outlets in the East Midlands and Yorkshire from Co-op Motors. We will integrate these new sites into our portfolio under the Bristol Street Motors brand, which is already well established in these regions.

"The mix of both freehold and leasehold property in this transaction reflects our approach of both developing our freehold property portfolio, while also using our cash conservatively.

"With this transaction we are welcoming 200 new colleagues."

BS