Lookers PLC Acquisition (7708H)
August 22 2016 - 3:30AM
UK Regulatory
TIDMLOOK
RNS Number : 7708H
Lookers PLC
22 August 2016
22 August 2016
Lookers plc
("Lookers", "Group" or "Company")
Acquisition of Knights North West Limited
Lookers plc, one of the leading UK motor retail and aftersales
service groups, announces that it has acquired Knights North West
Limited ("Knights Group"), for GBP27.2m in cash. The acquisition
introduces BMW and MINI to the Company's portfolio of prestige
brands for the first time, and further expands its motor division
in the West Midlands.
The acquisition is being funded from the Company's existing bank
facilities.
Knights Group is an experienced retailer of BMW and MINI models
across the West Midlands, with six dealerships in Stafford,
Stoke-on-Trent and Crewe. With a particular focus on service and
customer commitment, Knights Group complements Lookers' strategy of
improving the motor retail environment. The acquisition brings the
total number of Lookers dealerships to 166.
The addition of two premium brands to the Company's portfolio is
expected to increase customer penetration. Both BMW and MINI
continue to increase in popularity in the UK with BMW reporting
increased sales by 12% in 2015 compared to 2014, a UK record sales
year. MINI also produced a record year with an 18% increase in
sales on the previous year. The BMW Group achieve a market share of
8.7% of the total UK car market in 2015 (BMW 6.3% and MINI
2.4%).
The addition of Knights Group to the Company's motor division
follows the conditional purchase of the Drayton Group announced on
15 August 2016, which on completion will add seven Mercedes-Benz
dealerships in the West Midlands. Together, these acquisitions
substantiate the Group's strategy of accelerating growth in the
motor division following the proposed disposal of its parts
business, announced on 10 August 2016.
The statutory accounts for Knights Group for the year ended 31
December 2015 reported turnover of GBP213.3m and profit before tax
of GBP1.9m. At 31 December 2015 Knights Group had gross assets of
GBP70.3m and net assets of GBP6.0m.
This acquisition is expected to be earnings enhancing for the
year ending 31 December 2017.
Andy Bruce, Chief Executive of Lookers, said:
"We are delighted to welcome the Knights team to the Group and
are excited to be adding the iconic brands of BMW and MINI to our
list of premium marques, offering our customers a wider choice of
vehicles. This marks another significant addition to Lookers and
demonstrates our focus and commitment on expanding the motor
division following the sale of our parts business.
"We continue to see opportunity in the prestige car market as
demand increases amongst the UK's discerning motorists, and have no
doubt that the BMW and MINI dealerships will continue to thrive as
part of Lookers.
"We believe Knights fits with our key business priority of
delivering an even better customer experience; this is a business
which we have much admired for its financial and cultural success,
and we are excited to be working in partnership with the Knights
team to deliver more of what our customers want."
<Ends>
Enquiries:
Lookers Tel: 0161 291
0043
Andy Bruce, Chief Executive
Robin Gregson, Finance Director
Bell Pottinger Tel: 020 3772
2500
Victoria Geoghegan
Nick Lambert
Lucy Stewart
Notes to Editors:
About Lookers plc
Lookers plc (LOOK.LN) is a leading UK motor retail and
aftersales service group. Through two distinctive divisions, the
Group's operations cover all four UK countries and the Republic of
Ireland. The motor division operates through the sale of new and
used cars, and offers aftersales activities representing the
servicing, repair and sale of franchised parts to customer
vehicles.
Since its foundation in 1908, the Group has grown organically
and through acquisitions to its current position of 153 franchise
dealerships across 101 locations. As a whole, the Group offers an
extensive choice of new and used cars, motorcycles, commercial
vehicles and leasing services in addition to a range of after sale
services and automotive parts. Through its "Customers for Life"
programme, the Group is committed to providing unrivalled service,
offering advice, support and expertise from purchase to after sales
care and maintenance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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