Vertu Motors Acquires Burrows Motor Company Limited

LONDON – Vertu Motors, a prominent UK automotive retailer, has announced the acquisition of Burrows Motor Company Limited, increasing its dealership network and reinforcing its partnerships with leading car manufacturers. The transaction took place on Tuesday, marking a strategic expansion for the group.

Burrows, a family-owned dealership group, brings Vertu Motors five Toyota (NYSE:TM) dealerships, two Mazda dealerships, and one Kia dealership, notably boosting Vertu's presence in Yorkshire and Nottinghamshire. This acquisition aligns with Vertu's brand strategy, with plans to rebrand the newly acquired outlets and integrate them into Vertu's systems platform in the coming weeks.

Financial details reveal a purchase price net of cash acquired at approximately £12.5 million, with an additional £1.0 million deferred for 12 months. The acquisition includes £17.6 million for freehold properties and £4.0 million for goodwill. Vertu will fund the acquisition through its existing cash and borrowing facilities, maintaining gearing well below target levels. The Group has also assumed Burrows' debt, totaling around £10.5 million, which includes property-backed mortgage funding and used car stocking loans.

For the fiscal year ending December 31, 2023, Burrows reported revenues of £168.9 million and an operating profit of £1.4 million. Despite an anticipated loss for the remaining months of the financial year due to the cyclical nature of vehicle sales, the acquisition is expected to enhance earnings in its first full year under Vertu's ownership.

Vertu Motors CEO Robert Forrester expressed enthusiasm for the acquisition, highlighting strategic benefits of increased scale with key manufacturers and enhanced brand presence in targeted regions. The company's growth strategy through acquisitions is guided by investment return metrics and a commitment to creating shareholder value.

This expansion is part of Vertu Motors' ongoing strategy to grow its scale, following the Group's investment hurdle metrics and capital allocation policy.

This article was generated with support from AI and reviewed by an editor. For more information, see our T&C.