LOOKERS, the British motor group 29.9 per cent owned by Woodchester, is set to take over the North's largest car distributor, Charles Hurst. Lookers, which is based in Manchester and quoted on the London Stock Exchange, is expected to announce the deal next week.
Mr Fred Maguire, the chief executive of Belfast based Charles Hurst, refused to comment on the takeover yesterday. "It is pure speculation. I would not make any comment on speculation," he said.
Charles Hurst, which has the franchise for 10 makes of car in the North - including Ferrari - has one of the most successful Nissan dealerships in the UK and annual turnover of some £150 million. Annual profits are understood to be in the region of £2 to £3 million. Industry sources said last night that the group could be worth more than £20 million, depending on its level of debt and other factors.
The deal represents a substantial move for Lookers, which had a turnover of just under £400 million and made profits of around £4.8 million in 1994. Lookers market capitalisation is currently £28 million and the company is due to announce its preliminary results of 1995 next week. The executive chairman of Lookers, Mr Ken Martindale, was not available for comment.
Woodchester also refused to comment on the deal yesterday. The Lookers leasing business is channelled to Woodchester and the takeover of Charles Hurst may provide an opportunity for Woodchester to write more business in the North.
Charles Hurst was established in 1911 as a car body builder by Charles Hurst and Mr A.M. Patton. In 1985 it was taken over by a number of Northern businessmen, including Mr T.B.F. Thompson.
It employs 500 people across several divisions. Its specialist car division has the Northern franchise for Ferrari, Aston Martin, Rolls Royce, Bentley, Daimler and Jaguar.
However, the bulk of the company's new car sales business comes from its franchise for Nissan, Renault and Rover cars. The Nissan and Renault dealerships are among the largest in the UK. The company has been a Rover dealer, including Land Rover, since 1946. Lookers has dealerships for a number of other makes also.
The group also includes a second hand car division, Charles Hurst's Auto Centres, which sell more than 7,500 used cars each year. Adelaide Financial Services, the group's financial service arm, provides credit broking, general insurance and contract hire facilities. Charles Hurst is also the sole distributor of BP Oil in the North: and supplies BP stations in the North.
. The European Commission has not ruled out giving Credit Lyonnais a breathing space to fulfil pledges made by France in return for approval of a massive bailout of the state owned bank, which has a 52 per cent stake in Woodchester. A Commission spokesman said the official text of the decision published in December allowed a delay under strict conditions and with the Commission's approval.
