Nottinghamshire car retailer Pendragon has completed the sale of its UK motor and leasing business to North American automotive retailer Lithia in a £367 million deal.
The company said in a statement to the London Stock Exchange: “Pendragon is pleased to announce the sale of the entire issued share capital of Pendragon NewCo 2 Limited completed on 31 January 2024 for a gross aggregate consideration of £367 million, subject to certain financial adjustments, following the satisfaction of all customary completion conditions, alongside the subscription by Lithia for an aggregate subscription price of £30 million and the entry into the strategic partnership with a wholly-owned subsidiary of Lithia Motors, Inc.”
It marks the beginning of the transformation of Pendragon into Pinewood Technologies, a pure-play SaaS business, which operates the company’s dealer management software business.
The business believes that the growth prospects for the company will be enhanced materially as a result of becoming a standalone business, as well as through a strategic partnership with Lithia.
Chris Holzshu, Chief Operating Officer of Lithia, and George Hines, Chief Technology Officer of Lithia, have been appointed to the Board.
In addition, Mark Willis’ resignation as Director and Chief Financial Officer of the company will become effective today. He is replaced as a Director and Chief Financial Officer of the company by Oliver Mann, previously Director of Group Finance of Pendragon.
