Motoring company acquires counterpart for £21.8m
Motoring company Vertu has announced that it has acquired Hughes Group Holdings Limited for £21.8m as the deal will aim to increase the Gateshead-based auto dealer group’s network of sales and aftersales outlets to 125 locations.
In total, six sales outlets are added to the group by the acquisition which the board expects to be earnings enhancing in its first full year of ownership.
The operational management of the Hughes business will remain in place following acquisition.
Hughes has represented Mercedes-Benz for over 40 years, operating outlets in Beaconsfield and Aylesbury, which is an adjacent market area to Vertu’s existing Mercedes-Benz operations in Reading, Ascot and Slough. The acquisition also brings the Mercedes-Benz Commercial Van franchise to the Group for the first time through the operation in Aylesbury. Hughes also operates outlets for Skoda in Aylesbury, Jeep in Beaconsfield and Peugeot in High Wycombe and operates a vehicle preparation centre in Wendover.
For the year to December 31 2017, the company generated a pre-tax profit of £2.1m against revenues of £150m. Hughes’ operational management will remain in place following acquisition.
Robert Forrester, CEO of Vertu Motors said: “We are delighted to announce the addition of two excellent Mercedes-Benz dealerships to the Group which represent a further step in the growth of our premium business, adjacent to our existing Mercedes-Benz operations in the Thames valley.
“We also welcome the opportunity to further develop our relationship with Skoda, Peugeot and Jeep. The Hughes business has operated in the Beaconsfield area for over 40 years, and is very well established in this attractive market area, serving an excellent demographic profile for the Mercedes- Benz brand.”