DRAYTON Group, the Mercedes Benz car dealership with premises in Hindlip Lane, Worcester, has been snapped up by listed rival Lookers in a £55m plus deal.

With a £275m-turnover, Drayton Group has seven sites across the West Midlands and can trace its roots back to 1915. Its acquisition by Lookers, which has entered into a conditional agreement to purchase Warwick Holdings, trading as Drayton Group, for £55.4m in cash, is being funded from existing bank facilities through a conditional contract. A condition being the successful conclusion of the sale of the parts division, which is expected to complete by the end of October.

The acquisition will increase Lookers' partnership with Mercedes-Benz and Smart, where the new combined business will have an annual turnover of more than £600m and will provide further coverage to the group's offering to customers in the Midlands.

Andy Bruce, chief executive of Lookers, said: "As noted in our announcement on August 10, we are looking to accelerate growth and today's announcement shows we are putting the proceeds from the proposed disposal of the parts division to work as quickly as possible.

"We look forward to welcoming the Drayton team to the Lookers Group as it will enable us to increase our growth by adding value through excellent execution and targeted acquisitions. This acquisition will also help to build the company's presence in the Midlands."