Bank of Ireland Backs Car Group's Re-Finance

Bank of Ireland has been appointed joint lead arranger in a funding package to assist the expansion of one of the UK's largest car dealerships, Lookers - owners of the Charles Hurst group in Northern Ireland.

(PRWEB) October 18, 2006 -- Bank of Ireland has been appointed joint lead arranger in a funding package to assist the expansion of one of the UK's largest car dealerships, Lookers - owners of the Charles Hurst group in Northern Ireland.

The deal is a £200 million fundraising exercise by Lookers to enable it to refinance existing debt and provide funds for acquisitions. Lookers, headquartered in Manchester, employs 5,000 staff and has 100 car dealerships, with a national geographic footprint.

Lookers was founded in 1908 and floated on the stock exchange in 1973. It is now the second largest listed car dealership with a market capitalisation of £300 million. The Charles Hurst business in Northern Ireland employs 800 and contributes £350 million of the group’s £1.5bn turnover.

The company has been growing steadily through both organic growth and acquisitions. However in January it was pipped at the post in its attempts to acquire the Reg Vardy dealership by rival Pendragon, the UK's biggest dealership. A month later it became an acquisition target for Pendragon itself but successfully fought off a hostile takeover bid.

Commenting on the financing package Stephen Kirkpatrick, Head of Banking at Bank of Ireland, said:

"Lookers has agreed a funding structure that allows it to pursue a more active growth and acquisition strategies. Bank of Ireland is pleased to help fund its expansion programme. The company's strong position in the market, its robust business model and experienced management team mean it has excellent growth prospects.”

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