Vertu Motors To Buy Helston Garages For Enterprise Value Of £120.1 Mln

British automotive retail group Vertu Motors Plc (VTU.L) announced Thursday that it has agreed to acquire Helston Garages Group Limited for an enterprise value of 120.1 million pounds.

Vertu has acquired 28 franchised sales outlets, adding to its existing footprint of 160 franchised outlets.

Total gross consideration for the transaction is 182 million pounds, and the adjusted post-completion enterprise value paid by Vertu is 117 million pounds, net of cash and cash equivalents of 65 million pounds.

Helston is a family run, South West of England -based premium manufacturer automotive retail group. In the year 2021, the acquired dealerships generated revenues of 498.9 million pounds, an underlying EBITDA and underlying pre-tax profit of 20.6 million pounds and 17.9 million pounds, respectively.

Following the acquisition, Vertu will have 32 sales outlets in the region, up from the current four.

The acquisition is expected to be double digit earnings per share accretive for financial year 2024.

Completion of the transaction will be subject to applicable FCA regulatory approvals and is anticipated within the next five weeks.

The company said the deal will strengthen its premium OEM relationships, with Vertu welcoming Ferrari and Volvo to the Group

The Helston transaction will be financed through recently renegotiated and new debt facilities.

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