Also plans to resume its share buyback programme
One of Britain’s biggest car dealers Pendragon has announced plans to sell its US Motor Group business and focus on the UK used-car market after a strategic review.
Chief executive Trevor Finn said: “Following our strategic review, we have focussed on reshaping the business to accelerate transformation and ensure capital allocation is optimised across the group.”
“I believe this strategy will provide more reliable and sustainable returns,” he added.
The group added that “early indications” suggest the sale of its American motor unit would fetch more than £100m in proceeds before tax.
The firm, which warned on profit in October, said its used car business would remain its focus for growth. It is targeting doubling its used car revenue by 2021.
It also plans to resume its share buyback programme.