Pendragon PLC Acquisition of Dealership in California (3957I)
March 25 2015 - 3:02AM
UK Regulatory
TIDMPDG
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: 01623 725114
Tim Holden
RLM Finsbury Gordon Simpson Tel: 0207 1513801
Philip Walters
-ENDS-
This information is provided by RNS
The company news service from the London Stock Exchange
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