Marshall Motor Hldgs - becomes UK's largest Skoda retailer RNS Number : 6674R
Marshall Motor Holdings Plc, one of the UK's leading automotive retail groups, is pleased to announce that it has completed two acquisitions comprising six ŠKODA franchised dealerships. Marshall is now the UK's largest ŠKODA retailer which is line with the Group's strategy to become the UK's premier automotive group.
The Group acquired the business and assets of Leicester and Nottingham ŠKODA from Sandicliffe Limited on 31 January 2019. It subsequently acquired the business and assets of Bedford, Harlow, Letchworth and Northampton ŠKODA from Progress Bedford Limited on 28 February 2019. Each acquisition was completed in consultation with, and with the support of, ŠKODA UK.
The aggregate cash consideration paid for the goodwill and fixed assets of the acquired businesses was £3.5m. Each of the acquired businesses operates from leasehold properties which are fully compliant with the latest ŠKODA brand requirements. The acquired businesses made aggregate losses before tax* of approximately £0.4m in the twelve months ended 31 December 2018 and as a result, the transactions are expected to be earnings dilutive in the current financial year. They are, however, expected to be earnings enhancing in future years.
As a result, the Group now represents ŠKODA in 11 locations in the UK: Barnstaple, Bedford, Croydon, Harlow, Leicester, Letchworth, Newbury, Northampton, Nottingham, Oxford and Reading.
ŠKODA has enjoyed strong growth in recent years. In 2018, the brand achieved 74,512 registrations which represented a UK market share of 3.2% and has seen a 13% growth in the last 5 years. This has been driven by significant product development, particularly across the SUV segment, and this is expected to increase further with the introduction of new models in 2019. The brand is part of the Volkswagen Group which has announced it will invest almost €44 billion on electrification and new mobility services.
Daksh Gupta, Chief Executive of MMH, said:
"These acquisitions are an exciting milestone for Marshall in which we become ŠKODA's largest UK retailer by adding six further sites in excellent locations which are contiguous to our existing ŠKODA sites. The acquired businesses have good potential for growth and improvement in their operating performance as part of a scaled and focused division.
We believe it is the right time to grow our portfolio with ŠKODA and these acquisitions demonstrate our commitment to our stated strategy to grow with existing brand partners in new geographic territories. We are very proud to represent the ŠKODA brand and wish to thank the ŠKODA UK management team for their support over the years and we look forward to building on our excellent relationship.
I would like to welcome all colleagues of the acquired businesses to Marshall."
Rod McLeod, Director of SKODA UK said:
"Marshall Motor Holdings Plc is a well-respected and established vehicle dealership group. These acquisitions will see Marshall become our largest retail investor and I am very pleased that together we will continue to expand our offer of class-leading products to customers across the UK. ŠKODA continues to go from strength to strength. With the arrival of new models and the brand's first electric vehicles just around the corner, this is a key time for Marshall to further invest in ŠKODA."