Marshall Motor Holdings has completed the £22.3 million acquisition of eight Volkswagen Group franchised car dealerships from Jardine Motors.
The AM100 retail group has completed a deal to acquire six Volkswagen passenger car franchises in Aylesbury, Harlow, Letchworth, Loughton, Milton Keynes and St Albans together with a Volkswagen commercial vehicle franchise and body shop in Loughton and a Skoda passenger car franchise in Milton Keynes.
The £22.3m deal includes £13m of inventory, a statement issued via the London Stock Exchange revealed this morning (December 18).
Marshall reported that it expects the acquisitions to be “earnings dilutive” in 2020 and 2021 as aggregate revenue for the Jardine businesses amounted to £196.1m in 2017 and £212.8m in 2018 alongside losses before tax of £3.3m and £2.8m, respectively.
Around 400 employees will transfer to the group as part of the acquisition.
Jardine will retain its Volkswagen authorised repairer and approved used car operation in Towcester, which is excluded from the transaction, however it will be relinquishing the franchise as part of the acquisition.
An Audi approved used business in Aylesbury – which is adjacent to the Volkswagen dealership acquired by Marshall – is also being retained by Jardine.
The total consideration agreed for the fixed assets and goodwill of the Jardine VW Group businesses will be up to £9.3m, including deferred consideration in respect of the Aylesbury business, funded from Marshall’s existing resources.
The fixed assets include £4.3m in respect of freehold/long leasehold properties in Letchworth and St Albans and the goodwill is £3.6m.
In addition, excluding Aylesbury, the businesses held £13m of inventory of motor vehicles, parts and other stock at completion which will be primarily funded via the Group’s existing stock funding facilities.
[source: Automotive Management online]