Vertu Motors has acquired Burrows Motors for £12.5m, strengthening its relationship with Toyota, Mazda and Kia.
Vertu’s partnership with Toyota grows from six to 11 shops, Mazda from two to 4 and Kia from three to 4.
Burrows Motor Firm turned in pre-tax earnings of £106,000 in 2023 in comparison with £3m the prior 12 months on turnover of £168.9m (2022: £171.9m).
The acquisition will increase Vertu model presence in Yorkshire and Nottinghamshire, including shops in Barnsley, Doncaster, Rotherham, Sheffield, York and Worksop.
All shops will likely be rebranded Vertu in line according to its not too long ago introduced rebranding technique.
Robert Forrester, CEO of Vertu Motors, stated: “We’ve got lengthy admired the Burrows enterprise and are delighted to have accomplished this acquisition creating additional scale for the Group with key Producer Companions.
“The acquisition of Burrows offers us appreciable scale in our partnership with Toyota and strengthens the Vertu model in Yorkshire and Nottinghamshire.
“This is in line with our strategy to actively pursue value accretive growth opportunities to enhance our portfolio, applying strict investment return metrics as well as returning cash to shareholders.”
The deal consists of £17.6m in respect of freehold properties and a £4m goodwill fee.
Vertu as taken on Burrows money owed of £10.5m OEM backed mortgage funding and used automobile stocking loans.
