Vertu Motors (AIM:VTU) PLC has announced it will acquire two Toyota Motor (NYSE:TM) Corp franchise dealerships in Leicester and Loughborough for £9.2mln.
The acquisition cost includes £900,000 net cash funded from the company’s existing cash resources.
Vertu, which is paying £2.35mln for goodwill and £6mln for the two freehold properties, expects the acquisition to be earnings enhancing for the year ended 28 February 2023.
In 2020, the two businesses generated £29.2mln in revenue and reported profit before tax of £600,000.
Following this transaction, Vertu will own businesses that represent 13 car manufacturers across 39 sales outlets in the East Midlands – its most significant region – including three Toyota outlets.
"The addition of more Toyota sales outlets to the group's portfolio has long been a strategic objective since we envisage the brand gaining market share in the medium-term and being well-positioned to take advantage of opportunities as the wider automotive sector evolves,” said Vertu Motors chief executive Robert Forrester.