Motor retailer Pendragon has announced it will sell its operations in the USA, in a move that it anticipates will bring in £100m before tax.
The company’s American operations span across Southern California, trading as Hornburg and dealing in brands including Land Rover, Jaguar, Aston Martin and Chevrolet.
Pendragon said that, “given the strong performance of this division”, now was the best time to sell the operations and maximise value.
The company has also reviewed capital allocation among premium car brands. It now plans to reduce the number of premium franchised dealers over the next three years, releasing another £100m in capital.
The UK used car business, coupled with the software solution offer, was reiterated as the group’s “focus for growth”, with the aim of doubling revenues from the segment by 2021.
The company also said it was looking to recruit a global head for UK used car sales.
Trevor Finn, chief executive, said: “Following our strategic review, we have focussed on reshaping the business to accelerate transformation and ensure capital allocation is optimised across the group.
“The actions I am announcing today are a further step towards achieving our strategic
objectives. I believe this strategy will provide more reliable and sustainable returns.”
In October, Pendragon issued a warning and announced a review of its business after year-to-date profits fell over 10% on a like-for-like basis.