3 years ago
Online used car dealer Cazoo has cemented a move into commercial vehicles after agreeing to buy Vans365 for £6.5m in cash.
The deal – which still requires FCA approval – will see the Bristol based business become part of the Cazoo group.
Vans365 stocks 250 new and used vehicles and has a team of technicians for servicing.
Cazoo expects to get FCA approval in ‘the coming weeks’ and says the deal with have a ‘negligible impact’ on its 2021 operating results.
Cazoo says the deal will combine its ‘world-class platform and brand with 365’s expertise and relationships in the commercial vehicle market’.
The New York Stock Exchange-listed car dealer group explained in a statement that the acquisition will help ‘accelerate its planned launch’ into buying and selling commercial vehicles which it was set to do online ‘later this year’.
Vans3654 is said to be on target to achieve £14m in revenue in 2021 with an EBITDA margin of around nine per cent.
Jordan Franklin, managing director of Vans365 said: ‘Like Cazoo, customer obsession is at the heart of Vans365’s success and we’re delighted to be joining the Cazoo team to take our online proposition to the next level.
‘We have built strong supply relationships and achieved excellent customer feedback with a great team who have strong sector expertise and are looking forward to joining forces with Cazoo.’
Cazoo boss Alex Chesterman added: ‘The market for commercial vehicles is worth £16bn annually, with over one million vans sold each year in the UK, which expands our addressable market and is a natural product extension for us.
‘The acquisition of Vans365 will accelerate our planned launch of buying and selling commercial vehicles online later this year and will enhance both our customer proposition and team and I look forward to welcoming the Vans365 team to Cazoo.’
Cazoo has been incredibly acquisitive and most recently snapped up SMH Fleet Solutions for £70m and Cazana for £25m.
The group posted a £102m loss for the first half of 2021 – widening losses of £31m it clocked up in the same period last year.
Shares have fallen 22 per cent in the last month and are currently trading at $7.21.
The online dealer has also been nominated in this year’s Car Dealer Used Car Awards in the Used Car Online Sales Experience category, sponsored by Codeweavers.
The shortlist of the Used Car Awards 2021 will be published next week. A handful of tickets are still available and can be purchased from sales@blackballmedia.co.uk.
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The post Cazoo agrees to buy van dealer Vans365 for £6.5m – but deal needs FCA approval appeared first on Car Dealer Magazine.
