Vertu Motors Buys 2 Outlets, Working Capital

29th Jun 2010 13:16

LONDON (Dow Jones)--Vertu Motors PLC (VTU.LN), a U.K. motor retailer, said Tuesday that its subsidiaries have acquired two Vauxhall franchised outlets from Baker (Crewe) Limited (in administration) for an expected consideration of GBP1.5 million, of which GBP1.3 million relates to freehold property and GBP0.2 million to fixed assets. MAIN FACTS: -In a separate transaction Vertu has acquired the working capital for these two businesses, which will amount to some GBP2 million on an ongoing basis. -No goodwill has been paid. -Following the acquisition the Group will have nine Vauxhall dealerships. -In the year to Dec. 31, 2009, the unaudited management accounts of the acquired businesses show a combined turnover of GBP14 million. -The acquisition will be funded from cash from existing resources and after allowing for the initial investment in advertising and marketing in the new dealerships, they are expected to be earnings enhancing in the year to February 2012. -Shares at 1214 GMT down 1.0 pence, or 3.0%, at 32.0 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires June 29, 2010 08:16 ET (12:16 GMT)