7 January 2019 – acquisition

The automotive retailing group has acquired the on-line retailer of new vans, Vans Direct Limited, for estimated total consideration of £7.5m.  The company is a well-established on-line retailer of new vans and is based in Newport, South Wales.  The business brings significant business know-how and accelerates the group’s presence in multi-channel retailing.  In the year to 31 October 2017, Vans Direct revenues were £34.6m and EBITDA was £1.2m.  The acquisition is expected to be earnings enhancing immediately and will allow Vertu to expand its operations in a rapidly growing space.  We re-iterate our recommendation of BUY.