Vertu acquisition of Gordon Lamb Group:
- Adds five outlets in Derbyshire for £18.7m, including the group’s sixth Land Rover dealership
- Brings Toyota into the Vertu franchise portfolio
- Three dealerships in Chesterfield and Derby for Nissan and Skoda
- Acquisition is expected to be earnings enhancing in its first full year of ownership
VERTU’S Gordon Lamb buyout this week for £18.7 million progresses its aim to expand its range of franchises, adding Toyota.
Gordon Lamb operates the Toyota, Land Rover, Skoda and Nissan outlets in Chesterfield and the Skoda outlet in Derby and has traded for over 60 years.
Vertu Motors CEO Robert Forrester said: “Gordon Lamb is a much respected and well established business operating in Derbyshire, a core territory of ours. It is a business we have long admired and I am delighted to welcome them to the Vertu Group. I see a very clear cultural, strategic and business fit.
“We are delighted and excited to commence representing Toyota under the Vertu Toyota brand adding yet another first class franchise to our business.”
Automotive retailer Vertu, with its network of 132 sales and aftersales outlets across the UK, announced that it acquired the entire issued share capital of Gordon Lamb Group Ltd and its subsidiaries, including Gordon Lamb Ltd, (Gordon Lamb) for £18.7m settled from its existing cash resources.
The acquisition brings Toyota to the group, further progressing the group’s strategic goal of growing its range of franchises. The transaction includes goodwill of £8.3m and brings freehold properties valued at £7.5m into the group.
The acquisition increases the number of outlets operated by Vertu in Derbyshire from 10 to 14 and hence further provides synergies around marketing and management. The acquisition of Nissan in Chesterfield, for example, creates a market area for Nissan including Derby, Ilkeston and Sheffield and brings the total number of Nissan outlets the group operates to 11.
For the year ended 31 December 2015, Gordon Lamb achieved consolidated revenues of £85.8m. The Vertu board expects this acquisition to be earnings enhancing in its first full year of ownership.