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VERTU BUY-OUT FOR ALLAN JEFFERIES

Rapidly expanding automotive retail chain Vertu Motors has acquired two Allan Jefferies BMW Motorrad dealerships in the Yorkshire towns of Shipley and Rotherham. These outlets will adopt Vertu branding and join Vertu BMW Motorrad Sunderland as part of the Vertu Motorcycle Division, which also has solus Honda showrooms in Grantham, Nottingham and Stockton-on-Tees.    

Vendor was a Jefferies family holding entity, Saltaire Motor Company. Allan Jefferies has been trading as a family business, spanning four generations over 120 years, since 1901 and first took on a BMW motorcycle franchise in 1971.

Purchase price is estimated at £4.2m, subject to finalisation of completion accounts. This consideration includes a freehold property value of £1.85m and a payment in respect of goodwill of £0.5m. It will be settled from Vertu Motors’ existing cash resources. In accounts for the year ended 29 September 2021, Allan Jefferies had reported revenue of £20.5m and an operating profit of £463,000.

According to Vertu Motors chief executive Robert Forrester, the takeover is likely to contribute a small loss for the remaining four months of Vertu’s financial year, due to the seasonality of bike sales, and is expected to be earnings enhancing in its first full year of ownership. “Our business is performing strongly and the addition of two further BMW Motorrad outlets will be accretive both financially and strategically,” said Forrester.

BMW Motorrad UK and Ireland head Paulo Alves added: “We are delighted to support the acquisition of the excellent Allan Jefferies business in Yorkshire by Vertu. The Jefferies family has built a fantastic operation and we are confident that the business will be in good hands. As a leading brand, our customers take priority and we share this philosophy with Vertu. We welcome them as our largest partner in the UK.”

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