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PRESS RELEASE


14 October 2021
Strategic Acquisition of Motorline Holdings Limited by Marshall Motor Holdings plc

Marshall Motor Holdings Plc, one of the UK's leading automotive retail groups, announces the strategic acquisition of the entire issued share capital of Motorline Holdings Limited (including all of its subsidiaries) (‘Motorline’), (the ‘Acquisition’), for a cash consideration of £64.5m funded from the Group’s existing cash resources.

The Group has also separately acquired a related freehold property for £2.9m and has the option to acquire two additional strategic freehold properties for £24.9m. Motorline is a leading multi-franchise dealer group headquartered in Canterbury and operating across Kent, West Sussex, Surrey, Berkshire, Bristol, South Wales and the West Midlands.

It represents ten brands through 48 operating franchises including Toyota, Lexus, Hyundai, Volkswagen, Audi, ŠKODA, Nissan, Peugeot, and Maserati. In addition, it operates four Volkswagen Group Trade Parts Specialist (TPS) businesses and five used car centres.

Motorline’s consolidated revenues for the year ending 31 December 2020 were £695.2m with profit before tax of £6.1m (which included a one-off profit on the disposal of freehold property and other one-off items of in aggregate c£4.0m). Motorline’s consolidated shareholder funds at completion are c£30m.

Audi Maidstone

Key Highlights:

  • The Acquisition is in line with the Group’s strategy which includes growing scale with its chosen brand partners; annual revenues expected to exceed £3bn.
  • Scaled entry to the Toyota and Lexus brands – Motorline is the second largest retail partner for Toyota and Lexus in the UK with 19 franchises; Toyota/Lexus is the largest vehicle manufacturer globally with a passenger car market share of approximately 7.2% in the UK.
  • Scaled entry to the Hyundai brand – Motorline is the joint second largest Hyundai retail partner in the UK with seven franchises. Hyundai is the third largest vehicle manufacturer globally with a UK market share of approximately 4.0%.
  • Further strengthens the Group's position in terms of scale and depth of relationship with Volkswagen Group through new locations with the Volkswagen, Audi and ŠKODA brands in attractive territories, together with additional Volkswagen Group TPS locations.
  • Addition of seven further Nissan franchises, making the Group the fourth largest Nissan retail partner in the UK with ten franchises.
  • Addition of four further Peugeot franchises, making the Group the joint second largest Peugeot retail partner in the UK with seven franchises.
  • Addition of new brands increases the Group’s brand coverage to 85.4%, enabling synergies for used vehicle remarketing and fleet sales.
  • Extends the Group’s geographic footprint into a further eight counties with the Group now having representation in 37 counties in England and Wales, further strengthening the Group’s used car proposition.
  • Acquisition fully supported by all brand partners, both new and existing.
  • Funded from the Group’s existing cash resources; The Group remains in an adjusted net cash position post-Acquisition (pre exercise of property options).

Daksh Gupta, Group Chief Executive, commented: “We are delighted to announce the acquisition of Motorline which is in line with our strategy which includes growing both further scale with existing brand partners and developing scaled relationships with selected new brand partners.

Motorline is an extremely well-respected, long-standing business. The Obee family have overseen a significant expansion of the business in recent years and have invested in a market leading property portfolio. The acquisition has been funded from existing cash resources and is expected to generate attractive financial returns for our Group.

We are delighted to begin new and significant partnerships with Toyota/Lexus and Hyundai. These brands, with a combined market share in the UK of over 11%, have been a target for the Group for some time and the acquisition of Motorline provides immediate scale with each of them. I would like to thank each of them for supporting for this acquisition and very much look forward to working with them over the coming years to develop a mutually successful partnership.

I would also like to take the opportunity to thank our existing brand partners for their continued support for the further growth and development of the Group for which we are extremely grateful. Finally, and most importantly, I would like to welcome our 1,500 new Motorline colleagues to the Group. I look forward to meeting you soon and to working with you over the coming years.”

Agustin Martin, President and Managing Director for Toyota GB Plc, commented: “We are delighted to welcome Marshall Motor Group into the Toyota and Lexus network at a time when the industry is going through significant change. We welcome their decision to make such a substantial investment into our franchises and we look forward to working with them to continue to build upon the strong and successful partnership we have consistently enjoyed with Motorline.

We would like to thank the Motorline leadership team for their many years of dedicated support and partnership, providing exceptional representation for both the Toyota and Lexus brands. We are now excited about the future opportunity as the Marshall Motor Group and Motorline teams come together”

Ashley Andrew, Managing Director for Hyundai Motor UK, commented: “I am delighted that an organisation of the success and scale of Marshall Motor Group has made such a significant investment into the Hyundai UK dealer network. This move will further strengthen the brand in the UK at a time that we are enjoying record market share supported by a wave of new product introductions through this year such as all-new Tucson and IONIQ 5.”

Alex Smith, Managing Director for Volkswagen Group UK, commented: “Marshall Motor Holdings and Volkswagen Group UK have enjoyed a successful relationship for a number of years across all our six brands and TPS trade parts operations. As the mobility industry continues to evolve towards a world of electric, digital, connected, and ultimately autonomous cars, partners with a clear vision such as Marshalls will continue to be crucial to satisfying the evolving needs of our customers”.

Andrew Humberstone, Managing Director of Nissan Motors GB Ltd, commented: “We are delighted that our key strategic partner, Marshall Motor Holdings, has expanded their representation with Nissan. This is part of our agreed expansion plan, fully complementing our growth strategy with this this highly valued partner. We thank Glen and Thomas Obee for their commitment and strong partnership with the brand over the years.”

Alison Jones, Group Managing Director UK and Senior Vice President, Stellantis UK, commented: ‘We are delighted to expand our relationship with Marshall Motor Group, a strong partner focused on driving strong results and customer service, through strong teams. We thank the Motorline leadership team for their service, and look forward to the next chapter as the teams merge into Marshall Motor Group.’