H.R. Owen Buys Lookers Audi Franchise For GBP1.1M

29th Jun 2010 12:00

LONDON (Dow Jones)--H.R. Owen Plc (HRO.LN), a franchised motor dealer, announced Tuesday it has acquired the business and assets of the Audi afters ales franchise at Burr Road, Wandsworth, London from The Dutton-Forshaw Motor Company Limited, a subsidiary of Lookers Plc (LOOK.LN) for a consideration of GBP1.1 million. MAIN FACTS: -There is no payment for the goodwill of the business. -The employees of the business will transfer to HR Owen as part of the transaction. -The business has gross assets of GBP1.2 million and in the year to December 2009 generated a loss of GBP0.4 million before tax. -The company intends to relocate its existing Bentley afters ales operation, currently also located in Wandsworth, to the Burr Road site where it will operate alongside the Audi afters ales franchise. -Due to the synergies of combining the two operations, the new business is expected to be earnings enhancing for the company by 2011. -Shares at 1058 GMT stood at 82.50 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires June 29, 2010 07:00 ET (11:00 GMT)