Constellation Automotive Holdings, owner of WeBuyAnyCar and cinch, has taken a 20% stake in car dealership Lookers, just weeks after agreeing to buyout rival Marshall Motors.
The company, which owns the UK car auction market, has expanded parts of its automotive offering, opening a used car buying service during the pandemic.
Marshalls and Lookers are two of the UK’s largest traditional car retailers. If Constellation controlled both, it would become the UK’s largest car dealership.
Most of Lookers’ 78 million shares, representing a 19.9 per cent stake, were bought at 102 pence a share from Tony Bramall, who stepped down as non-executive director last month after a 14-year stint at the British car dealership.
Constellation informed Lookers of its investment, Lookers said Monday, and indicated its support for the group’s “newly defined strategy and senior leadership,” according to the statement Monday.
“We are delighted to welcome Constellation as a significant shareholder in the group,” said Ian Bull, Chairman of Lookers. “Their investment confirms the board’s view that the group remains significantly undervalued. As indicated in our recent announcement, the commercial performance is solid, with an excellent bank of new car orders and the group has a clear strategic framework.
Shares of Lookers rose 1.5% in early trading Monday to 89.9p. They have more than doubled in the last 12 months.