Acquisition of Dealership in California

RNS Number : 3957I

Pendragon PLC

25 March 2015

 



25 March 2015

Pendragon PLC ("Pendragon")

Acquisition of Dealership in California

Pendragon announces that is has agreed to acquire the trade and certain assets of a motor dealership located in Glendale, California,  USA,  from Texas Automobiles Leasing t/a Lexus of Glendale ("Lexus of Glendale").   The business is a luxury dealership exclusively representing the Lexus brand and will continue to trade as Lexus of Glendale.  The gross assets to be acquired total $27.5m, including a freehold property valued at $25.5m.  Total consideration, which includes $21.0m of goodwill, is estimated at $48.5m and will be settled in cash on completion from Pendragon's existing resources, subject to completion accounts and receipt of manufacturer agreements.

For the year ended 31 December 2014, the accounts of Lexus of Glendale showed a profit before tax of $2.6m.  The Board expects this acquisition to be immediately earnings enhancing.

Trevor Finn, Chief Executive said:-

"The Lexus brand in the United States is one of the most desirable brands in the retail motor industry.  This dealership is a high quality business, with territories in the Los Angeles area encompassing Glendale, Pasadena and Burbank.  This represents an attractive addition to our existing dealerships in California".

Figures used in the calculation of the consideration and the accounts of Lexus of Glendale are based on unaudited accounts data provided by Lexus of Glendale.  The profit before tax is stated after adjusting for non-recurring items of $1.3m

25 MARCH 2015

Enquiries:	Pendragon PLC	Trevor Finn	Tel: [phone]
		Tim Holden
	RLM Finsbury	Gordon Simpson	Tel: [phone]
		Philip Walters

-ENDS-

 

END

 

 

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