NO jobs will be lost in a deal that will see the region's largest independent motor group bought for £87.5m.
Manchester-based car dealer Lookers picked up the keys to 30 more showrooms by snapping up Benfield Motor's owner Addison Motors, boosting its presence in the North-East.
Benfield, founded in Byker, Newcastle in 1957, has 1,600 employees at showrooms across the North and in Scotland. It reported pre-tax profits of £7m on revenues of £699.7m for 2014. The family owned business was started by John Squires and developed by his ion John.
Benfield’s franchises include Audi, VW, VW Commercial Vehicles, Skoda, Ford, Toyota, Lexus, Hyundai, Kia, Renault, Dacia, Nissan and Honda.
It offers sales, service, parts and bodyshop facilities for new and used cars and commercial vehicles.
Mark Squires, Benfield’s chief executive, said: “This was a very difficult decision for our family to reach after all these years and company history. However after much careful thought and consideration, we think this is the best course for the business and for the long term future of our staff and customers to become part of a national group.
“I’m pleased to confirm staff jobs will be safeguarded and Lookers plc certainly enjoy the scale, capabilities and access to financial capital that is required to win and secure the business in the decades ahead.
“Lookers are a first class company and have demonstrated their strength and depth as one of the leading motor groups in the country. In Benfield they are acquiring a fantastic business with a great culture and customer service ethic and as a family business we are proud of what we have achieved.
“We are grateful to everyone who works for Benfield and to each and every one of them for their contribution to our success over many years.”
Lookers, which already has branches in Darlington, Middlesbrough and Northallerton, said the cash deal, funded by new banking facilities, was expected to provide an immediate boost to earnings.
Chief executive Andy Bruce said: "We are delighted to have acquired this respected and long established family business. A key attraction for us is the cultural fit.
"Both Lookers and Benfield share an approach which puts employees at the heart of our business and this acquisition will ensure that continues."
“We are committed to preserving and nurturing this culture as well as putting in place new initiatives which allows Benfield to benefit from our larger scale and leverage the investments we have made.
“The acquisition also strengthens our relationship with a number of our key manufacturer partners and gives us a truly national footprint by adding to our presence in the North East of the UK.
“I would like to take this opportunity to welcome all of the employees of Benfield to the wider Lookers family.”
Lookers - founded in Manchester by John Looker in 1908 and originally a bicycle and parts shop - employed around 6,000 people at the end of last year. It already has more than 120 dealerships.
The firm, which also sells parts and servicing, includes Taggarts showrooms in Scotland and Charles Hurst in Northern Ireland.
Last month it reported a seventh successive year of improved earnings as half-year pre-tax profits rose 6 per cent to £39.9m.
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