Vertu acquires Yorkshire BMW and Mini outlets

Vertu said it will benefit from BMW and Mini's strong pipeline of electric vehicles.

The outlets in York, Malton, Sunderland, Teesside and Durham will be rebranded to trade as Vertu.

The Durham, Teesside and Sunderland dealerships are freehold and long leasehold premises. The remaining dealerships operate from leasehold premises, and new leases have been agreed.

Vertu paid a total cash consideration of £18.7m for the outlets, together with the assumption of manufacturer used vehicle stocking finance of £8.9m.

Robert Forrester, CEO of Vertu Motors, said: “We are delighted to announce the introduction of the much sought after BMW, Mini and Motorrad franchises to the group, previously a gap in our portfolio of manufacturer partners.

"The addition of these franchises has long been a strategic objective of the group. The acquisition achieves immediate scale in a region where the group is headquartered and already has strong representation.

“The business has previously performed at a high level and it is our intention to ensure that it returns to this previous success delivering both for customers and financially.

Graeme Grieve, CEO for BMW Group UK and Ireland, added: “Vertu has been working with BMW Group over a number of years as a potential partner and we are delighted to be able to bring their professionalism and energy into our retailer network.

"We very much look forward to working closely with Vertu, to ensure customers in the North East and Yorkshire have an excellent customer experience with our brands and gain from the substantial investment we have made in electric powertrains as the UK accelerates its transition to zero carbon in new vehicles.”

Analyst Sanjay Vidyarthi at Liberum said: "Vertu has made an excellent acquisition, partnering with BMW for the first time.

"We think the deal has been struck on favourable terms. The assets are currently loss-making, but we back Vertu management to turn the business around.

"Trading at Vertu, despite the November lockdown, has been remarkably strong."