© Provided by City AM
Canada's Alpha Auto Group (AAG) has today launched a £465.4m acquisition of the British car dealership Lookers, continuing a string of corporate deals in the sector.
Global Auto Holdings Limited - the bidding vehicle for the takeover - announced the acquisition this morning, with the bid worth 120p per share.
That price represents a substantial 35.3 per cent premium to Lookers' share closing price of 88.7p yesterday.
Lookers' bidders see the company as a key pillar of its vision to become a global leader in the auto retail sphere and expand in overseas markets.
Kuldeep Billan, founder and executive chair of AAG, said that the acquisition represented a "compelling opportunity to acquire one of the leading UK auto retail groups."
"With the UK auto retail market undergoing substantial change, including the adoption of new distribution models, we believe that the wider group is well positioned to navigate the current environment with geographically diversified operations and a focus on operational excellence."
Mark Raban, Chief Executive Officer of Lookers, said: "Today's offer reflects the transformational progress that has been made in recent years. We have harnessed our strong market position, enhanced our brand relationships, and executed well against our six strategic priorities.
"I am excited about the combination with Bidco. It will create a business of greater scale, and bring together two successful businesses with complementary OEM relationships, and a strong platform to support future growth in the UK."
It comes following considerable speculation yesterday that a takeover of the British car retail firm was close, following reports from Sky News' Mark Kleinmann.
Toronto-based AAG was launched in 2014 and has just seven sites in the US and 10 in Canada.
Lookers had recently delivered impressive trading performances, exceeding expectations with £4.3bn revenues in its last full year results and recently announced the acquisition of Fourway Vehicles two months ago.
It is currently trading from around 150 sites across the UK.
There had been speculation last year that the car retailer would acquire would acquire its main UK rival, Pendragon.
Read more
Car chain Lookers profits dip as soaring costs throttle jump in sales