Benfield and Vertu continue on acquisition road

Nov 3 2009 by Peter McCusker, The Journal

TWO fast-growing North East motor dealers have bought new outlets as they take advantage of the troubles of some of their competitors.

Benfield Motors, of Newcastle, has taken over Volkswagen dealerships in Carlisle and Dumfries, making this its first foray north of the Border and Vertu Motors, the UK’s ninth largest motor retailer, has bought a Midlands Vauxhall dealership for nearly £3m.

The acquisition by Benfield brings its portfolio to 30 across the North East, Yorkshire, Cumbria and South West Scotland representing 12 franchise brands.

The former Harper and Hebson VW dealerships in Rosehill Industrial Estate in Carlisle and Bradford’s of Dumfries, previously operated by Scottish dealer group, The Verve, will now be operated by Benfield.

The dealerships have a combined turnover of £25m and employ 36 staff at Carlisle and 18 at Dumfries.

Mark Squires, chief executive of the Benfield Motor Group, said: “Benfield has continued to invest during the economic downturn and we are aiming to make further acquisitions.

“The new acquisitions to the Benfield portfolio are a natural fit for us. We have represented Volkswagen for nearly 40 years in the North East, and this gives us the chance to grow our operations and our presence in the North West with a very logical extension to our existing businesses representing one of our strongest brands.” It says its ongoing investment during the downturn has paid dividends with new car sales, boosted by the Government scrappage scheme, and used car sales both up so far this year.

Benfield employs 1,100 people and expects to record sales in excess of £300m in 2009, with a target of hitting £350m by 2011.

Stock market-listed Vertu, which is also based in Newcastle, has bought Lichfield Vauxhall for £2.78m from Steve Thompson Cars. This includes the purchase of a freehold property for £1.675m.

Robert Forrester, CEO of Vertu said: “We are pleased to add a further business to the group bringing our total number of sales outlets up to 55, and our number of Vauxhall dealerships to seven.

“The acquisition further strengthens the regional concentration of the Bristol Street Motors brand in the West Midlands area.

“The Lichfield Vauxhall business fits in well with our stated strategy of building a successful, scalable motor retail group delivering shareholder value and we continue to evaluate further growth opportunities that the current market conditions present.”

Vertu has 55 dealerships forming a national network across England, operating under the Bristol Street Motors and Bristol Street Motor Nation brand names. It recently raised £30m to fund further acquisitions.

Car sales have improved in recent months, with the help of the Government’s scrappage scheme.

The turmoil in the sector has led to many retailers going bust and some dealerships being taken over or being closed.