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By Jana Simmons
LONDON–Car dealership chain Lookers PLC (LOOK.LN) on Wednesday announced that it had conditionally agreed to sell its automotive parts business to Alliance Automotive U.K. Ltd. for 120 million pounds ($156 million) in cash.
The deal, which is conditional on shareholder approval and EU merger control clearance, is expected to be completed by the end of October. The company plans to use the money from the disposal for acquisitions in its motor division over the short and medium term.
“The offer from Alliance Automotive is an attractive one and will enable us to focus on what we do best, buying and selling cars, and adding value through acquisitions,” said Chief Executive Andy Bruce.
“We are already at advanced stages of negotiation on the acquisitions of two premium-branded car dealership businesses and hope to make further announcements on these in the coming weeks,” he added.
Lookers reported a 20% rise in 2015 revenue to GBP3.65 billion. The parts business contributed revenue of GBP218.8 million that year.
Shares at 0825 GMT were up 4 pence, or 3.7%, at 112 pence.
Write to Jana Simmons at jana.simmons[a]wsj.com
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