Vertu buys Blakes in £4.9m deal

This marks Vertu’s second acquisition, following its £40m purchase of Bristol Street Motors in March, in a move which saw it assume the company’s trading name.

Blakes, rated 149 in the Motor Trader Top 200, operates Peugeot sites in Chesterfield and Worksop, a Vauxhall dealership in Chesterfield and a Vauxhall service centre in Matlock. The business will operate under the Bristol Street name and takes Vertu’s representation up to 39 outlets.

In the 12 months to the end of December 2006, Blakes reported turnover of £59.7m, with operating profit of £0.4m and profit before tax of £0.04m. The audited net asset value of Blakes was £2.3m at the end of 2006 and at completion has been estimated at £4.4m following the revaluation of three freehold properties.

“We are pleased to have announced our second acquisition since we listed on AIM in December 2006, as we continue to consolidate the highly fragmented UK motor retail market,” said Robert Forrester, CEO of Vertu Motors.

“I am confident there are significant growth synergies to be gained from the integration of the Blakes business into Bristol Street Motors. I look forward to developing the business and welcoming all our new colleagues into the group.”

Forrester said the group had a “strong strategic and geographic fit” with the existing Vertu operations and was part of the acquisition strategy it set out in December.

Once the deal has been completed Vertu will integrate the business in a move to boost margins. Used car sales have been targeted as an area for immediate improvement in a move to boost the sites’ used to new car sales ratio.

Meanwhile, Forrester confirmed the group is looking for further sites to increase its geographical spread.

“We continue to look at additional acquisitions and have the management and financial firepower to continue the consolidation process,” he said