THE Newcastle-based Vertu motor retailer group has used the cash raised during a recent £30m right issues to snap up a troubled Midlands-based motor group.

Vertu, the ninth largest UK motor retailer, has agreed a price of £7.9m, for four outlets and one repair shop of Brooklyn Motor plc from its administrators.

Freehold properties and operations of Worcester Ford, Redditch Ford, Redditch Mazda and an Iveco authorised repairer in Redditch. In addition, the operations of Cheltenham Mazda have also been acquired.

Following the acquisition of these assets, Vertu Motors will operate 45 franchised operations, four non-franchised and two standalone service operations.

Robert Forrester, chief executive, said: "We are delighted to have acquired these businesses in one of our core geographical areas.  As a consequence we will benefit from accruing an even stronger regional concentration." 

"There is considerable scope to integrate these dealerships onto Vertu's scalable platform, and these are excellent volume franchises that strengthen the Group's portfolio balance."

The AIM-listed company recently raised £30m in a rights issue to fund future acquisitions.