Lookers acquires Dutton Forshaw
03/10/2007
Lookers plc, one of the UK's leading motor retail groups, has announced the acquisition of the entire issued share capital of Dutton Forshaw Group Limited, the motor retail division of Lloyds TSB Asset Finance Division Limited 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, Citroen, Honda, Hyundai, Land Rover, Peugeot and Skoda.
In 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 plc 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.'
