C
ar dealership agency Pendragon will promote its UK motor enterprise, together with manufacturers akin to CarStore and Stratsone, because it focuses on its dealership administration know-how as a substitute.
US big Lithia, with annual revenues of greater than $20 billion, will purchase Pendragon’s dealerships for £250 million, of which £240 million might be returned to shareholders.
Pendragon will then change its title to Pinewood , the title of its supplier administration software program enterprise, and begin a three way partnership with Lithia to roll out Pinewood throughout the “highly attractive” North American market.
Pendragon CEO Bill Berman mentioned: “Pendragon has built one of the UK’s leading automotive retailing businesses, underpinned by a market leading dealer management system, the quality of our people, long-standing relationships with OEMs and excellent execution for customers.
“The Pendragon Board considers Lithia to be perfectly placed to build on this progress.
“The launch of Pinewood as a standalone company is a unique and exciting opportunity to create a best-in-class product for customers, which we can market globally and drive substantial value for our shareholders and in Lithia we have the perfect partner to help accelerate Pinewood’s push into the hugely attractive North American DMS market.”
Shares in Pendragon surged by 25% on the again of the deal, to 23.1p, valuing the whole enterprise at £322 million.
The deal will nonetheless want approval from Pendragon shareholders.
Pendragon had been approached by Swedish motor firm Hedin Group final September with a doable takeover provide value £400 million, or 29p per share, nevertheless it didn’t lead to a sale.
Andres Hedin, who owns the Hedin Group, nonetheless owns greater than 1 / 4 of Pendragon shares.
