Bramall eyes £35m bid for Quicks

QUICKS Group has become the latest target for consolidation in the motor dealers sector. Bigger rival CD Bramall is in talks with the Ford specialist about taking it over in a deal worth at least £35m.

Quicks, which operates 40 mainly volume car dealerships in England and Scotland, will announce to the Stock Exchange tomorrow that it is in talks that might lead to an offer at above 85p per share. Shares in Quicks, whose chief executive is John Day, closed last week at 84p, valuing the company at £33.7m.

Bramall, Britain's fourth-biggest car dealer, valued at about £111m, has emerged as the owner of a 25.2% shareholding in Quicks bought from private investor Jack Petchey late last year.

The shares are owned through a Bramall family trust. Family head Tony Bramall is chairman and 34% shareholder in Bramall, which is regarded as one of the best-managed motor dealerships.

Quicks revealed the Bramall holding and the bid talks this weekend in response to investment company Guinness Peat Group's announcement on Friday that it was launching a tender offer to all Quicks' shareholders to buy up to 3.65m at up to 85p a share. GPG is keen to add to its 20.8% stake in Quicks, built up over recent years. But Quicks' decision to disclose the bid talks is likely to lift its share price on Monday and effectively scupper GPG's plan.

A move on Quicks would be the latest shake-up in a sector ripe for consolidation. Last week we revealed that Sytner Group had been targeted by US-based UnitedAuto Group which then launched an agreed bid.