Franchised car dealership Marshall Motor Holdings has expanded across areas of England with a £106.9 million acquisition of Ridgeway Garages.
The deal will see Marshall Motor Holdings increase the number of countries in which it operates from 19 to 25 — making it the seventh largest car dealership group in the UK. Ridgeway Garages, which is headquartered in Newbury, operated some 30 franchised dealerships in the South.
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Marshall Motor Holdings have been following an expansion plan, as it seeks to boost earnings, with a £24.4 million acquisition of SG Smith dealership group as recently as November 2015. As for the most recent acquisition, Ridgeway Garages posted revenues of £722.6 million in 2015.
Daksh Gupta, the chief executive of Marshall Motor Holdings, said of the most recent deal: “The Board expects the acquisition of Ridgeway to deliver significant earnings enhancement and returns materially greater than our weighted average cost of capital.
“Ridgeway is a company I have been associated with since 2007. [Chairman] David Newman and his team have built an excellent business with fantastic senior management, great staff, strong performance and a similar culture to Marshall Motor Holdings.”