LONDON (ShareCast) - (Sharecast News) - UK automotive retailer Vertu Motors has acquired Hughes Group for an estimated cash consideration of £21.8m, increasing the group's network of sales and aftersales outlets to 125 outlets.
Vertu expects the acquisition of Hughes, and its Beaconsfield-based subsidiary, to be earnings enhancing within its first full year.

Hughes, which has represented Mercedes-Benz for over 40 years, has operating outlets in Beaconsfield and Aylesbury, an adjacent market area to Vertu's Mercedes operations in Reading, Ascot and Slough and will bring the firm its first Mercedes-Benz commercial van franchise.

Hughes turned in revenues of £150m, EBITDA of £2.8m and pre-tax profit of £2.1m in its trading year ended 31 December 2017.

The consideration, funded by Vertu's existing resources, was based on estimated net assets of Hughes of £12m and goodwill of £9.8m.

Vertu also acquired Hughes' £3.5m of debt.

Robert Forrester, chief executive of Vertu Motors, said, "We are delighted to announce the addition of two excellent Mercedes-Benz dealerships to the Group which represent a further step in the growth of our premium business, adjacent to our existing Mercedes-Benz operations in the Thames valley."

As of 1130 BST, Vertu shares had picked up 2.42% to 50.80p.

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