Franchise Disposal
16 Junio 2003 - 12:54PM
UK Regulatory
H.R. OWEN PLC
FRANCHISE DISPOSAL
H.R. Owen, one of the UK's leading retailers of prestige motor cars, announced
today that it has agreed binding terms with Porsche Retail Group Limited to
dispose of the assets and business of its Porsche franchise in Hatfield,
Hertfordshire, and a satellite service centre in North London. It has also
granted to Porsche Retail a short-term lease of its Hatfield and North London
premises. This transaction results from Porsche's national plans to develop
regional dealer groups.
The business is being disposed of for a cash consideration consisting of a
goodwill payment of �2,000,000 and assets and stock of approximately �
1,500,000, subject to adjustment on the day of completion.
During the year ended December 2002, management accounts show that H.R. Owen
Porsche made a profit of �1,288,000 before tax and certain divisional and
central costs. The turnover was �33,000,000.
Nick Lancaster, Chief Executive, said: "The Porsche franchise has formed part
of the Group's sports car division, which also represents Ferrari, Maserati,
Lamborghini, Lotus and Noble. Due to the review of the Block Exemption, a
number of vehicle manufacturers have reorganised their franchising, and it is
as a result of such a reorganisation that we have been obliged to relinquish
our Porsche franchise. Although we regret losing such a prestigious brand, we
have, overall, been the net beneficiary of additional specialist businesses
following similar reorganisations by other manufacturers.
On 1 April 2003, we announced the acquisition of Heathrow Limited, a
substantial BMW dealership in West London, and it is our intention to put the
proceeds of the present disposal towards the acquisition of a number of
additional specialist car businesses, for which negotiations are already well
advanced."
H.R. Owen operates franchises for Audi, Bentley, BMW, Chrysler, Ferrari,
Jaguar, Jeep, Lamborghini, Land Rover, Lexus, Lotus, Maserati, Mercedes-Benz,
Noble, Rolls-Royce, SEAT, Suzuki, Volkswagen and Volvo.
Enquiries:
Nicholas R Lancaster
Chief Executive
Tel: 020 7245 1122
END