Lookers has announced a large acquisition this morning, buying Benfield Motors for £87.5m in cash. This transaction will be immediately earnings enhancing, and we anticipate upgrading current year forecasts by c4-5% and next year by c12.5%+. With the MD of the Motor Division having previously run Benfield, confidence in the integration plan and future synergies is high. We would therefore expect to upgrade our target price by an amount comparable to next year’s upgrade, i.e. to around 200p+. Thi ....
03 Sep 2015
Benfield acquisition for £87.5m – 12.5% upgrades in 1st full year (FY’16)
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Benfield acquisition for £87.5m – 12.5% upgrades in 1st full year (FY’16)
- Published:
03 Sep 2015 -
Author:
Matthew McEachran -
Pages:
4
Lookers has announced a large acquisition this morning, buying Benfield Motors for £87.5m in cash. This transaction will be immediately earnings enhancing, and we anticipate upgrading current year forecasts by c4-5% and next year by c12.5%+. With the MD of the Motor Division having previously run Benfield, confidence in the integration plan and future synergies is high. We would therefore expect to upgrade our target price by an amount comparable to next year’s upgrade, i.e. to around 200p+. Thi ....