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Motor dealer group, Cambria, who trade as Motorparks, Dees, Grange, Doves and Invicta have acquired the trade and assets of Stratstone Jaguar Woodford in South Woodford, North London from Pendragon Premier Limited, a subsidiary of Pendragon PLC, in a £2.1 million cash deal.

Cambria say that the territory has great potential for the Jaguar and Land Rover franchises and complements the Group’s existing Jaguar and Land Rover footprint. The Group now operates 5 Jaguar and 4 Land Rover dealerships under the Grange trading name.

In addition to a showroom in South Woodford the business has an Aftersales facility in Hainault, Essex operating from leasehold premises. The consideration for the acquisition comprises £2.0 million of goodwill, £0.1 million for fixed assets, £0.1m for used vehicle stock, £0.2 million for parts stock with the remaining £0.3 million deduction in consideration for customer deposits transferred and apportionments. The acquisition is being funded from the Group’s existing facilities.

In 2015, the Woodford dealership had annual revenues of £44.4 million and profit before tax of £0.7 million. Cambria say the acquisition will be earnings neutral for the group in the remainder of the financial year to 31 August 2016, and will be earnings enhancing in the financial year to 31 August 2017.

Cambria have plans to relocate the business to a new dealership facility that will be compliant with the JLR Arch Corporate Identity Concept. The lease on the current showroom facility has nine years remaining and therefore it will be necessary to sublet the facility for approximately six years while Cambria is not in occupation. The property advice received during diligence states that the passing rent on the showroom lease is over-rented when compared against the market rent and the Directors have therefore made a fair value assessment of the lease liability amounting to £1.0 million. This will be accounted for as an addition to the overall goodwill attributable to the transaction for the purposes of the Group’s statutory accounts to 31 August 2016.

Following this transaction, the Group operates a total of 31 dealerships representing 46 franchises and 17 brands across the UK.

Talking about the deal, Mark Lavery, Chief Executive Officer of Cambria, said, “We are pleased to have acquired this Jaguar and Land Rover franchise in North London, which complements and enhances the Group’s existing Jaguar Land Rover businesses. The acquisition represents continued delivery of the strategy to develop our portfolio of premium and high luxury franchises in strategic locations by acquiring businesses that are earnings enhancing. The Board believes that the South Woodford territory provides significant potential and we are keen to maximise the opportunity as we build and relocate to a new dealership facility.”

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