Lookers buys Knights Group for £27.2m

FTSE 250 car dealership and aftersales service chain Lookers has acquired BMW dealer Knights Group for £27.2m in cash that will be funded from the group’s existing bank facilities.

Lookers said the acquisition introduces BMW and Mini to the company’s portfolio of prestige brands for the first time and further expands its motor division in the West Midlands.

Knights Group has six dealerships in Stafford, Stoke-on-Trent and Crewe and the deal brings the total number of Lookers dealerships to 166.

Chief executive Andy Bruce said: “This marks another significant addition to Lookers and demonstrates our focus and commitment on expanding the motor division following the sale of our parts business.

"We continue to see opportunity in the prestige car market as demand increases amongst the UK's discerning motorists, and have no doubt that the BMW and Mini dealerships will continue to thrive as part of Lookers.”

The addition of two premium brands to the company's portfolio is expected to increase customer penetration. Lookers noted that BMW reported a 12% jump in sales in 2015 compared to 2014, while Mini also produced a record year with an 18% increase in sales on the previous year.

At 0938 BST, Lookers shares were down 0.4% to 130p.