Pendragon PLC US Motor Group - Disposal of certain Dealerships (8660X)
02 Mayo 2019 - 1:00AM
UK Regulatory
TIDMPDG
RNS Number : 8660X
Pendragon PLC
02 May 2019
Pendragon PLC
("Pendragon" or the "Company")
US Motor Group - Disposal of certain Dealerships in
California
Pendragon announces that it has agreed to dispose of the trade
and assets of its Jaguar Land Rover motor vehicle dealership
located in Mission Viejo, California (the "First Transaction") and
that it has agreed to dispose of the trade and assets of its Jaguar
Land Rover dealership located in Newport Beach, California (the
"Second Transaction"), together (the "Transactions"). The
dealerships subject to the Transactions form part of the Company's
overall US Motor Group.
In relation to the First Transaction, the purchaser of the
business is Lithia Motors, Inc ("Lithia"), a well known US
dealership group listed in the US. The consideration for the First
Transaction is expected to be approximately GBP29.0 million, to be
satisfied entirely in cash payable at completion, with the precise
amount being determined following the preparation of completion
accounts in respect of the transaction. As at 31 December 2018, the
gross assets that are the subject of the First Transaction amounted
to GBP24.6 million and the profit prior to central costs amounted
to GBP GBP0.9 million.
In relation to the Second Transaction, the purchaser of the
business is US Auto Trust, LLC ("US Auto"). The consideration for
the Second Transaction is expected to be approximately GBP31.0
million, to be satisfied entirely in cash payable at completion,
with the precise amount to be determined following the preparation
of completion accounts in respect of the transaction. As at 31
December 2018, the gross assets that are the subject of the Second
Transaction amounted to GBP42.9 million and the profit prior to
central costs amounted to GBP GBP6.0 million. In addition to the
trade and assets that are the subject of the Second Transaction, US
Auto previously acquired the Company's single Aston Martin business
in the US on 02 July 2018 for consideration of GBP GBP3.1m.
Completion of the Transactions is subject, in each case to a
number of conditions, including, inter alia, the satisfactory
completion of due diligence by both purchasers.
Upon the agreement that has been entered into in respect of the
First Transaction and the Second Transaction, respectively,
becoming unconditional, Jaguar Land Rover, as the OEM, will have a
right of first refusal over the trade and assets that are the
subject of the relevant Transaction. In the event that such right
is exercised in respect of the First Transaction or the Second
Transaction, Jaguar Land Rover will nominate a replacement to the
current purchaser, who will otherwise acquire the relevant trade
and assets on the same terms.
The Transactions are in line with the Company's stated strategy
of disposing of its US Motor Group. The intended application of the
sales proceeds, expected to be received in Q3, will be announced as
part of the strategic update which will be provided with the
announcement of the Company's interim results.
The Company will make a further announcement upon completion of
each of the Transactions or earlier in the event that the First
Transaction or the Second Transaction will not proceed to
completion. The Company continues to progress the disposal of the
remainder of its US Motor Group.
Enquiries:
Pendragon PLC Mark Herbert Tel: 01623 725114
Mark Willis
Headland Henry Wallers Tel: 0203 805 4822
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END
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