Pendragon sold its dealer network to Oregon-based Lithia Motors for £397 million
Sale caps a year-long period in which North American firms have bought some of UK’s biggest dealer groups
US dealer group Lithia has completed its purchase of Pendragon, parent company of the Evans Halshaw and Stratstone brands.
This caps a 12-month period in which North American firms have taken over some of the UK’s biggest dealer groups.
Its successful bid of £397 million saw off the challenge of a joint bid from US rival Penske and Sweden’s Hedin Group.
Lithia already had a foothold in the UK, thanks to the completion of its takeover of Jardine Motors Group in March last year with a successful bid reportedly totalling £300m. Jardine trades under the Lancaster name.
The Lithia deal includes investment into Pendragon’s Pinewood dealer management system, which Lithia will integrate into all of its UK dealerships.
Pinewood becomes a standalone company with its own listing on the UK stock exchange following the separation from Pendragon.
The deal adds Pendragon’s 160 dealerships to Lithia’s UK operations and will bring in additional annual revenue of $4.5 billion (£3.5bn), Lithia said in a statement.
Lithia in the UK will be run by Neil Williamson, the former head of Jardine who led the integration of the company into Lithia last year. Prior to that, he was managing director of Seat UK.
Also last year, Canada’s Alpha Auto Group completed a takeover of Lookers, which has 150 dealerships.
The biggest US dealer group operating in the UK is Penske, which runs 146 dealerships here after taking over Sytner back in 2002.
Source: Autocar
