Marshall acquisitions make it UK's largest ŠKODA retailer
Marshall Motor Holdings in Cambridge has completed two acquisitions comprising six ŠKODA franchised dealerships.
The deals make Marshall 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 and subsequently bought the business and assets of Bedford, Harlow, Letchworth and Northampton ŠKODA from Progress Bedford Limited.
Each deal 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 £3.5 million. 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 December 31 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.
The Marshall 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 per cent and has seen a 13 per cent growth in the last five 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.”
Rod McLeod, Director of SKODA UK added: “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.”