£60m
EDITED PRESS RELEASE
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Lookers
plc is pleased to announce the acquisition of the entire issued
share capital of Dutton
Forshaw Group Limited, the motor retail division of Lloyds
TSB Asset Finance Division Ltd for a total consideration of up
to £60m, payable in cash on completion. This comprises a payment of
approximately £28m for the entire issued share capital of Dutton
Forshaw and the assumption of a maximum of £32m of debt.
The acquisition is a Class 2 transaction for Lookers under the
Listing Rules and is expected to complete on 26 October 2007. In
the financial year to 31 December 2006, Dutton Forshaw generated
sales of £431m, reported an operating profit of £3m and had gross
assets of £129m.
Lookers expects to retain the vast majority of employees of
Dutton Forshaw. Dutton Forshaw comprises 31 outlets operating under
the Dutton Forshaw and Dovercourt
brands and its acquisition is in line with the Lookers strategy to
expand the existing market areas in which it already operates with
preferred manufacturers.
The acquisition will increase the group’s number of Ford outlets
from one to eight, Mercedes-Benz outlets from four to eight and VW
outlets from five to nine. Other outlets acquired include
Chevrolet, Chrysler Jeep and Dodge, Citroën, Honda, Hyundai, Land
Rover, Peugeot and Skoda.
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By GlobalDataIn particular, the acquisition will strengthen Lookers’ presence
in the South East and North West of England, and provide a foothold
in South Wales.
Commenting on the acquisition, Ken Surgenor, chief executive of
Lookers said: “This acquisition provides Lookers with an ideal
opportunity to broaden our geographical spread and to deepen our
relationships with our manufacturer partners, including our newer
partners Ford and Mercedes-Benz.
“We are delighted to have acquired such high quality dealerships
which we expect will be earnings enhancing in our first full year
of ownership and we remain focused on growing Lookers organically
and by acquisition.”
