Car dealership group Vertu has agreed a multi-million pound deal to buy motorcycle retailer Allan Jefferies.
The Top 100 car dealerships outfit confirmed the news in a statement to the London Stock Exchange this morning (Tuesday).
It acquired the business and assets of two BMW Motorrad outlets in Saltaire Motor Company Yorkshire.
Both locations currently trade as Allan Jefferies and have been in the same family for four generations since 1901.
The company has represented BMW since 1971 and the latest agreement makes Vertu the largest retailer of BMW Motorrad motorcycles in the UK.
The outlets purchased are located in Shipley, near Bradford and Rotherham and will be rebranded to market under the Vertu brand.
They will then become part of the Vertu Motorcycles division, which will operate six motorcycle outlets representing BMW Motorrad and Honda.
For the financial year ending September 29, 2021, the two concessionaires had sales of £20.5 million and operating profit of £463,000.
Total consideration is estimated at £4.2 million, subject to finalization of completion accounts, including a freehold property value of £1.85 million and a goodwill payment of £500,000.
Due to the seasonality of motorcycle sales, Vertu expects its new acquisitions to post a slight loss by the end of the current fiscal year.
Robert Forrester, CEO of Vertu Motors, said: “Our business is doing well and the addition of two more BMW Motorrad outlets will be both financially and strategically accretive to the group. Vertu becomes largest UK partner for BMW Motorrad.’
Paulo Alves, Head of BMW Motorrad UK and Ireland, added: “We are delighted to support Vertu’s acquisition of the excellent Allan Jefferies business in Yorkshire.
“The Jefferies family has built a fantastic operation and we are confident the business will be in good hands.”
“As a leading brand, our customers come first and we share this philosophy with Vertu. We welcome them as our biggest partner in the UK.
In October, Forrester told Car Dealer he wanted to catapult his group to become one of the UK’s top three with 400 dealerships to its name.
The Vertu boss spoke to Car Dealer Live, which you can watch below, in an extensive interview after the group’s first half results were released.
Virtue posted profit of £28.2m on revenue of nearly £2 billion for the first half of 2022.