Pendragon, the British car company, announced on September 18 its plans to sell its UK motor and leasing businesses to Lithia for a total of 250 million pounds ($310 million). With this sale, Pendragon will also enter into a strategic partnership with Lithia to expand its dealer management software (DMS) business into North America. As part of the partnership, Pinewood, Pendragon’s DMS business, will be rolled out across Lithia Motors’ existing 50 UK sites. In addition, a joint venture will be created to accelerate Pinewood’s entry into the North American DMS market.

Pendragon described the transaction as the result of its strategic review launched last year. The company believes the sale will generate significant value for shareholders, with an estimated cash dividend of around £240m. As part of the joint venture, Lithia will subscribe for 279.4 million new Pendragon ordinary shares, worth £30 million. Despite these changes, Pendragon will retain its existing listing on the London Stock Exchange and rebrand as Pinewood Technologies Plc.

Note: The Reuters article does not provide specific details about the JV.

By Editor

Leave a Reply