Lookers PLC
12 October 2005
12 October 2005
LOOKERS PLC STRENGTHENS AFTERSALES PARTS OPERATIONS WITH ACQUISITION OF APEC
LIMITED
Lookers plc ('Lookers' or the 'Group'), a leading UK motor retail group, is
pleased to announce that it has completed the acquisition of Bristol based APEC
Limited, the leading wholesale distributor of high quality own branded braking
parts to the automotive aftermarket.
APEC, which employs 50 people and was established in 1969, has achieved a
leading position in the supply of vehicle braking parts to motor factors
nationwide. Lookers is paying £9.25 million in cash for the entire issued share
capital of the business.
The business operates from a 40,000sq ft. packaging and distribution facility
based on a freehold three acre site on the Great Western Business Park in Yate,
Bristol. The acquisition will add around £15 million to Lookers' turnover and
should be earnings enhancing from January 2006. At 31 December 2004, the
business had net assets, including the property at market value, of
approximately £7.0 million. In the 12 months to 31 December 2004, adjusted
operating profits of the business were £1.4 million.
The newly acquired business will continue to trade under its existing name, from
its existing location and with the same senior operational management team.
Ken Surgenor, Lookers' Chief Executive, said: 'As we have previously stated our
strategy is to strengthen our franchised, used cars and aftersales base through
organic growth and by acquisitions.
Whilst our focus in the first half was to grow our franchise portfolio and
increase our used car supermarkets presence, we are delighted to have taken this
opportunity to strengthen our position in the aftersales parts market.
Aftersales and parts is one of the fastest growing segments of the automotive
market and currently contributes 53% of the Group's gross profits. Having
successfully entered the parts aftermarket in the UK through FPS, we are
confident that APEC will prove to be a successful addition to our parts
activities'.
For further information:
Lookers plc
Ken Surgenor, Lookers Chief Executive 0161 291 0043
David Dyson, Lookers Finance Director 0161 291 0043
Hudson Sandler 020 7796 4133
James Hill / Nick Lyon
Notes to editors:
Lookers plc, headquartered in Stretford, Manchester, is one of the UK's leading
multi-franchise motor retail groups. It operates over 80 franchised outlets and
approximately 40 vehicle servicing and parts sales facilities across the UK. It
also owns Charles Hurst, the largest motor dealer in Northern Ireland.
Lookers, which reported annual turnover of approximately £1.1 billion for the
year ended December 2004, represents 22 marques, roughly equally split between
volume 12 and prestige 10. The Group specialises in new and used car sales, as
well as servicing and parts distribution.
For further information on Lookers, including all its outlets in the UK and the
franchises it represents, please visit its website at www.lookers.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
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