Macklin Motors owner Vertu takes on Ferrari brand after sealing key acquisition

Vertu Motors, the car dealership heavyweight with a dozen Macklin Motors showrooms in Scotland, has added 28 sales outlets after completing a key acquisition south of the Border.

The firm said it had sealed the takeover of Helston Garages Group after receiving regulatory approval for the deal. Helston is a “predominantly premium” car retail group based in the south west of England. Vertu said the acquisition would further strengthen relationships with key partners such as BMW, Mini and Jaguar Land Rover, while Volvo and Ferrari will join the manufacturers represented by the group.

Consideration of £117 million, net of anticipated cash and cash equivalents of £65m, has been financed through a combination of re-negotiated and new debt facilities, Vertu noted. Following the acquisition, the group will have 32 sales outlets in the region, up from the previous four.

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Chief executive Robert Forrester said: “We are delighted that Vertu Motors has completed its acquisition of Helston and 28 sales outlets, further evidence of the execution of our long-term strategy to build scale, geographic coverage and deepen our relationships with our key automotive manufacturers. I have spent much of the last week in the business, have met many highly talented people and visited the impressive and well invested property estate. The integration process will commence immediately and be largely completed by March 2023.”

In October, the Macklin Motors owner reported its second highest half-year of profits as the price of new cars continues to spike. The group said it made £28m in profits in the first half of the year after raking in £2 billion in revenues. It is almost half the £52m the group made last year after the exceptional post-pandemic period when new and used car prices went through the roof. But new car prices have continued to climb and were 13 per cent higher in the six months to the end of August compared with the same period last year. The average selling price of a new vehicle was £24,294.

Vertu, which declared an interim dividend of 0.7p per share, up from 0.65p, said consumers “continue to accept” long lead times for new cars as a result of shortages.

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