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Lookers, the UK’s fifth largest dealer group, has acquired rival Dutton Forshaw in a £60m deal.
The acquisition will see Lookers pay £28m for the business as well as taking on £32m of debt.
The deal stengthens Lookers’ Ford partnership
Lookers said the takeover would strengthen its relationship with its newer manufacturer partners as well as expanding its footprint in the UK.
Geographical spread
“We are delighted to have acquired such high quality dealerships which we expect
will be earnings enhancing in our first full year of ownership,” said Ken Surgenor, Lookers chief executive.
will be earnings enhancing in our first full year of ownership,” said Ken Surgenor, Lookers chief executive.
“This acquisition provides Lookers with an ideal opportunity to broaden our
geographical spread and to deepen our relationships with our manufacturer partners,
including our newer partners Ford and Mercedes-Benz.”
Dutton Forshaw operates 31 dealerships and holds eleven franchises, including both volume and prestige brands, in locations in the south east and north west of England and in South Wales.
Ford and Mercedes
The acquisition takes the number of Ford dealerships operated by Lookers from one to eight and doubles the number of Mercedes sites from four to eight.
It has also boosted its Volkswagen portfolio from five to nine.
In the financial year to 31 December Dutton Forshaw generated sales of £341m and recorded an operating profit of £3m.
It is ranked 21 in the Motor Trader Top 200.
Lookers said it expected to retain the “vast majority” of Dutton Forshaw employees.