I am delighted to announce that we have completed the purchase of Ridgeway Garages (Newbury) Limited (“Ridgeway”), which is by far the largest acquisition the group has made to date, and I am very pleased to be welcoming 1,333 new colleagues to the Group.
Ridgeway is a successful multi-franchise dealer group with 2015 revenues of £723m, operating across the affluent southern home-counties, Wiltshire and Dorset representing 12 brands via 30 franchise dealerships. In addition, Ridgeway operates five own branded used car outlets, two trade parts specialists and two standalone body shops alongside a large group pre-delivery inspection centre.
This is a transformational acquisition for us, in line with our stated strategy to grow scale with existing brand partners and extend our geographic footprint. It further builds on our acquisition last year of SG Smith.
You will recall that in April 2015 when we floated the company, we talked about listing being the key enabler for the business to continue to grow over the coming years. We also shared with you our plan to double our 2014 turnover and treble the profit by 2020. The enlarged group will have full year revenues of circa £2.2bn which will make us the 7th largest UK motor dealer group. This effectively means we have achieved our 2020 vision to double our turnover in just over a year; we now need to focus on trebling our profit!
There is a strong brand overlap between MMH and Ridgeway as can be seen in the table below. We are also delighted to be adding Mercedes-Benz Trucks to our portfolio. I am also delighted that all brand partners were supportive of the acquisition.
Ridgeway operates across contiguous locations to our existing footprint in the East, South-East, and South-West regions of England: the middle and South of England with locations in Oxfordshire, Berkshire, Hampshire, Wiltshire, Dorset and West Sussex. This extends our geographic footprint from 19 to 25 counties (see maps below).
Ridgeway is a company I have been associated with since 2007. It
is an excellent business with great people, strong performance and a
similar culture to MMH. Many of the same values and drivers of the MMH
business are present in Ridgeway, including a strong alignment to our
five key strategic pillars of Class Leading Returns, Customer First,
Retailing Excellence, People Centric and Strategic Growth.
You may be interested to view a very short video I recorded for external press which can be found at http://www.brrmedia.co.uk/broadcasts-embed/5742f98...
In addition, I recorded a short radio interview about the acquisition and this is attached.
Please join me in welcoming our new Ridgeway colleagues to our Group. I look forward to working closely with them again into the future.