• Sat. Sep 23rd, 2023

Lithia to Purchase UK Motor and Leasing Enterprise from Pendragon for $310 Million


Sep 18, 2023
Lithia to Purchase UK Motor and Leasing Enterprise from Pendragon for $310 Million

Pendragon, a U.Ok. motor dealership, has introduced its plans to promote its total motor enterprise and leasing enterprise to Lithia Motors for £250 million ($309.6 million). As a part of this deal, Pendragon will change its identify to Pinewood Applied sciences PLC and enter right into a strategic partnership with Lithia. The corporate’s Pinewood division, which operates its personal seller administration software program enterprise, will turn out to be a standalone entity and focus solely on software-as-a-service.

Moreover, Pendragon and Lithia have agreed on the phrases of their strategic partnership. This consists of the rollout of the Pinewood enterprise to Lithia’s present 50 U.Ok. websites and the creation of a three way partnership to expedite Pinewood’s entry into the North American seller administration software program market. To help this partnership, Lithia will subscribe to 279.4 million new extraordinary shares in Pendragon for £30 million.

The transaction is predicted to offer a money dividend to shareholders of roughly £240 million. This can encompass a money dividend of 16.5 pence per share, a retained 83.3% possession within the persevering with enterprise (initially valued at round 10.3 pence per share), and a direct curiosity within the North American three way partnership (initially valued at round 0.6 pence per share).

Total, this strategic transfer by Pendragon goals to streamline its operations and concentrate on its software program enterprise, whereas additionally benefiting from the partnership with Lithia.