Lookers PLC Acquisition (7708H)

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RNS Number : 7708H

Lookers PLC

22 August 2016

22 August 2016

Lookers plc

("Lookers", "Group" or "Company")

Acquisition of Knights North West Limited

Lookers plc, one of the leading UK motor retail and aftersales service groups, announces that it has acquired Knights North West Limited ("Knights Group"), for GBP27.2m in cash. The acquisition introduces BMW and MINI to the Company's portfolio of prestige brands for the first time, and further expands its motor division in the West Midlands.

The acquisition is being funded from the Company's existing bank facilities.

Knights Group is an experienced retailer of BMW and MINI models across the West Midlands, with six dealerships in Stafford, Stoke-on-Trent and Crewe. With a particular focus on service and customer commitment, Knights Group complements Lookers' strategy of improving the motor retail environment. The acquisition brings the total number of Lookers dealerships to 166.

The addition of two premium brands to the Company's portfolio is expected to increase customer penetration. Both BMW and MINI continue to increase in popularity in the UK with BMW reporting increased sales by 12% in 2015 compared to 2014, a UK record sales year. MINI also produced a record year with an 18% increase in sales on the previous year. The BMW Group achieve a market share of 8.7% of the total UK car market in 2015 (BMW 6.3% and MINI 2.4%).

The addition of Knights Group to the Company's motor division follows the conditional purchase of the Drayton Group announced on 15 August 2016, which on completion will add seven Mercedes-Benz dealerships in the West Midlands. Together, these acquisitions substantiate the Group's strategy of accelerating growth in the motor division following the proposed disposal of its parts business, announced on 10 August 2016.

The statutory accounts for Knights Group for the year ended 31 December 2015 reported turnover of GBP213.3m and profit before tax of GBP1.9m. At 31 December 2015 Knights Group had gross assets of GBP70.3m and net assets of GBP6.0m.

This acquisition is expected to be earnings enhancing for the year ending 31 December 2017.

Andy Bruce, Chief Executive of Lookers, said:

"We are delighted to welcome the Knights team to the Group and are excited to be adding the iconic brands of BMW and MINI to our list of premium marques, offering our customers a wider choice of vehicles. This marks another significant addition to Lookers and demonstrates our focus and commitment on expanding the motor division following the sale of our parts business.

"We continue to see opportunity in the prestige car market as demand increases amongst the UK's discerning motorists, and have no doubt that the BMW and MINI dealerships will continue to thrive as part of Lookers.

"We believe Knights fits with our key business priority of delivering an even better customer experience; this is a business which we have much admired for its financial and cultural success, and we are excited to be working in partnership with the Knights team to deliver more of what our customers want."

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Enquiries:

 
 Lookers                           Tel: [phone] 
                                    0043 
 Andy Bruce, Chief Executive 
 Robin Gregson, Finance Director 
 
 Bell Pottinger                    Tel: [phone] 
                                    2500 
 Victoria Geoghegan 
  Nick Lambert 
  Lucy Stewart 
 

Notes to Editors:

About Lookers plc

Lookers plc (LOOK.LN) is a leading UK motor retail and aftersales service group. Through two distinctive divisions, the Group's operations cover all four UK countries and the Republic of Ireland. The motor division operates through the sale of new and used cars, and offers aftersales activities representing the servicing, repair and sale of franchised parts to customer vehicles.

Since its foundation in 1908, the Group has grown organically and through acquisitions to its current position of 153 franchise dealerships across 101 locations. As a whole, the Group offers an extensive choice of new and used cars, motorcycles, commercial vehicles and leasing services in addition to a range of after sale services and automotive parts. Through its "Customers for Life" programme, the Group is committed to providing unrivalled service, offering advice, support and expertise from purchase to after sales care and maintenance.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 22, 2016 04:30 ET (08:30 GMT)