Marshall Motor buys Leeds Volvo, sells vacant site

Automotive retail and leasing group Marshall Motor Holdings updated the market on its ongoing portfolio management on Tuesday, which it said was in line with its strategy of driving “class leading returns” and strategic growth with existing brand partners in new geographic territories.

The AIM-traded company confirmed it had completed the acquisition of the business and assets of Leeds Volvo from Harratts Group for £77,000.

It said the addition of Leeds Volvo was completed in full consultation and with the support of Volvo Car UK.

The acquisition further strengthened the group's position as the largest franchise partner of Volvo Car UK by number of sites, the board said.

As a result, MMH now represented Volvo in nine locations in the UK - Bishop's Stortford, Cambridge, Grantham, Leeds, Melton Mowbray, Milton Keynes, Nottingham, Peterborough and Welwyn Garden City.

The transaction was not expected to have a material impact on the group's earnings in the current financial year.

It was, however, expected to be earnings enhancing in future years following the planned investment to redevelop the site in line with new Volvo Retail Experience standards and the benefits of being part of a larger group are realised, Marshalls explained.

In addition to the acquisition of Leeds Volvo, the group also recently completed the sale of a vacant freehold site in Totton, Southampton for £2m.

The site was acquired as part of the acquisition of Ridgeway Garages Newbury announced in May 2016.

“We are pleased to announce the addition of Leeds to our Volvo division, in line with our strategy of growth with existing brand partners in new geographic territories,” said chief executive Daksh Gupta.

“We are excited to extend our relationship with Volvo and I am also delighted to welcome all colleagues of Leeds Volvo to Marshall.

“We continue to manage our portfolio to generate class leading returns for our shareholders and this recent disposal of vacant land demonstrates our disciplined approach to capital management.”