Marshall Motor Holdings PLC Portfolio Update - Acquisition and Disposal (1926H)

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RNS Number : 1926H

Marshall Motor Holdings PLC

06 June 2017

6 June 2017

MARSHALL MOTOR HOLDINGS PLC

("MMH" or the "Group")

Portfolio Update - Acquisition and Disposal

Marshall Motor Holdings Plc, one of the UK's leading automotive retail and leasing groups, today provides an update on its ongoing portfolio management in line with the Group's strategy of driving class leading returns and strategic growth with existing brand partners in new geographic territories.

Leeds Volvo Acquisition

MMH announces that it has completed the acquisition of the business and assets of Leeds Volvo from Harratts Group Limited for GBP77,000.

The addition of Leeds Volvo was completed in full consultation and with the support of Volvo Car UK. This acquisition further strengthens the Group's position as the largest franchise partner of Volvo Car UK by number of sites. As a result, MMH now represents Volvo in nine locations in the UK: Bishop's Stortford, Cambridge, Grantham, Leeds, Melton Mowbray, Milton Keynes, Nottingham, Peterborough and Welwyn Garden City.

The transaction is not expected to have a material impact on the Group's earnings in the current financial year. It is, however, expected to be earnings enhancing in future years following the planned investment to redevelop the site in line with new Volvo Retail Experience standards and the benefits of being part of a larger Group are realised.

Vacant Freehold Land Sale

In addition to the acquisition of Leeds Volvo, the Group has also recently completed the sale of a vacant freehold site in Totton, Southampton for GBP2m. This site was acquired as part of the acquisition of Ridgeway Garages (Newbury) Limited announced in May 2016.

In relation to the acquisition of Leeds Volvo, John Wakefield, Managing Director of Volvo Car UK, said:

"The transformation of the Volvo brand and product range has contributed to four years of consecutive sales growth in the UK, a trend that we fully expect to continue as we replace our top-selling XC60 model this year. Marshall is a key franchise partner to Volvo Car UK, operating in nine locations nationwide, including Cambridge, our 2016 Dealer of the Year. We are pleased to have supported Marshall's acquisition of Leeds Volvo and look forward to supporting their plans to upgrade the site to meet our new Volvo Retail Experience standards and further develop our representation in the area."

Daksh Gupta, Chief Executive of MMH, said:

"We are pleased to announce the addition of Leeds to our Volvo division, in line with our strategy of growth with existing brand partners in new geographic territories. We are excited to extend our relationship with Volvo and I am also delighted to welcome all colleagues of Leeds Volvo to Marshall."

"We continue to manage our portfolio to generate class leading returns for our shareholders and this recent disposal of vacant land demonstrates our disciplined approach to capital management."

ENDS

For further information and enquiries please contact:

 
 Marshall Motor Holdings plc          c/o Hudson Sandler 
 Daksh Gupta, Group Chief Executive   Tel: +44 (0) 20 
                                       7796 4133 
 Mark Raban, Chief Financial 
  Officer 
 
 Investec Bank plc (Financial         Tel: +44 (0) 20 
  Adviser, NOMAD & Broker)             7597 5970 
 Christopher Baird 
 David Flin 
 David Anderson 
 
 Hudson Sandler                       Tel: +44 (0) 20 
                                       7796 4133 
 Nick Lyon 
  Alex Brennan 
 Bertie Berger 
 

Notes to Editors

About Marshall Motor Holdings plc (www.mmhplc.com)

The Group's principal activities are the sale and repair of new and used vehicles through Marshall Motor Group and the leasing of vehicles through Marshall Leasing. The Group's businesses have a total of 104 franchises covering 24 brands, operating from 90 locations across 26 counties in England. In addition, the Group operates five trade parts specialists, four used car centres, five standalone body shops and one PDI centre.

In May 2017 the Group was recognised by the Great Place to Work Institute, being ranked the 22(nd) best place to work in the UK (large company category). This was the seventh year in succession that the Group has achieved Great Place to Work status.

In November 2016 Marshall Leasing was named Fleet Service Company of the Year 2016 by the Association of Car Feet Operators (ACFO), an award it also won in 2010 and 2013.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 06, 2017 02:00 ET (06:00 GMT)