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Vertu Motors has acquired Rowes Garage’s four Honda dealerships in the South West of England bringing its total representation of the brand to 17 sites.
Rowes has been trading for over 90 years. The outlets are located in Plymouth, Plymstock and Truro.
The business also operates a Suzuki franchised outlet in Plymouth, which will continue to operate as a used car outlet and Suzuki authorised repairer on acquisition and will be refranchised in due course.
The business will be rebranded to trade under the Vertu and Bristol Street Motors brands immediately. The group now operates 34 outlets in the south west.
For the year ended 31 December 2022, Rowes Garage achieved revenue of £30.2m and pre-tax profits of £768,385.
Consideration, net of cash acquired, is estimated at £6.2m, subject to finalisation of completion accounts.
The consideration includes freehold properties with a value of £3.6m and a payment in respect of goodwill of £0.9m.
Vertu said the business will lose money in the remaining four months of the financial year due to seasonality but is expected to be earnings enhancing in its first full year of ownership.
Robert Forrester, CEO of Vertu Motors, said: “I am delighted to deliver further expansion for the Group in the South West of England following the successful and accretive Helston acquisition.
“The long standing successful Rowes business is a great addition to the Group’s 14 existing Honda sales outlets and increases scale further in the South West where we will operate 34 outlets. We continue to execute our strategy to build a scaled business.”