Ashurst advises on sale of Pendragon's UK motor and leasing business to Lithia
01 November 2023
Global law firm Ashurst is advising Jefferies International Limited, as sponsor to Pendragon PLC, on the proposed £367 million sale of its UK motor and leasing business to Lithia UK Holding Limited, a wholly-owned subsidiary of US-based Lithia Motors, Inc.
Pursuant to the transaction, Pendragon and Lithia have also agreed the terms of a broader strategic partnership, which includes the rollout of Pinewood, Pendragon's dealer management software business, to Lithia's existing UK sites and the creation of a joint venture to accelerate Pinewood's entry into the North American market. The Transaction also involves a cash box subscription by Lithia for Pendragon shares representing 19.99% of Pendragon's total issued share capital.
The proposed class 1 disposal was approved by Pendragon's shareholders on 25 October, but remains conditional upon the satisfaction of certain regulatory conditions. Completion of the sale is expected to take place in Q4 2023. The subscription and the strategic partnership are conditional upon the completion of the sale.
The Ashurst team is being led by partner Simon Bullock, assisted by senior associates Louise Chan and Maria McAlister, with counsel John Gordon advising on pensions aspects.
