Vertu acquisition secures foothold in Land Rover market
A team of lawyers at Bond Dickinson (formerly Dickinson Dees and Bond Pearce) has advised Vertu Motors plc on the £31 million acquisition of Leeds-based Albert Farnell Limited in addition to an associated £50 million equity fundraising.
Vertu is one of the UK’s largest motor retailers with over 90 dealerships across the UK from Bristol and Exeter to Durham and Glasgow.
The acquisition marks Vertu’s entry into the Land Rover market with Farnell Land Rover forming a new division within the business.
he deal comes at an exciting time for Vertu as it announces record sales of £1.3bn and an adjusted operating profit up 31% on the previous year at £11 million.
The team at Bond Dickinson was led by corporate partners Ben Butler, Shiv Sibal and Jamie Pass, who advised on all aspects of the acquisition, including an associated £50 million equity fundraising for Vertu and share placing.
Robert Forrester, chief executive of Vertu Motors plc, commented: “We are very pleased to announce the acquisition of Farnell, a dealership group with over 65 years’ history in Yorkshire.
“The business already performs at a very high level and reflects our first entry into the exciting Land Rover franchise, operating in a large market area in Yorkshire.”
Albert Farnell Limited, which will be acquired from the Cooperative Group, comprises three Land Rover dealerships in West Yorkshire.
In the year to December 2012 Farnell Land Rover’s sales totalled £113m, making approximately £3.9m in profit.
The acquisition is being fully underwritten by Espirito Santo Investment Bank and Panmure Gordon.
Both the acquisition and placing are conditional on the issue of the new placing shares being approved by Vertu’s shareholders at a general meeting to be held on 7 June 2013.
This was posted in Bdaily's Members' News section by Mark Lane .
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