Pendragon PLC

Pendragon PLC is a multi-national operator of franchised motorcar dealerships in the United Kingdom with international outlets in the United States. This member of the Pendragon Group focuses on a variety of luxury cars marketed under the Stratstone name which include Porsche, Ferrari, and BMW. Other brands are marketed as Evans Halshaw which is the largest Vauxhall retailer in the UK. The company's registered office is at Annesley, Nottingham, Nottinghamshire, England.

The company is listed on the FTSE 250 index and once had Sir Nigel Rudd as company Chair.

Pendragon was formed on the 4 October 1989. For the year ended 31 December, 2006 across over 320 franchised dealerships, turnover was £5,101 million, while profits were £96.4 million before tax and £67.5 million after tax.

Entry into North American market

In 2000 Pendragon launched its U.S. market entry with the acquisition of Bauer Jaguar in Santa Ana California. At the time Bauer was the third largest Jaguar retailer in the country. Pendragon would then proceed to drive out a proven management team to be replaced by personnel from the U.K. who had absolutely no understanding of American automotive market operations. In January 2009 Pendragon would close Bauer and walk away from the last two years of their lease on the property. Pendragon would continue a disastrous legacy of overpaying for and micromanaging their U.S. dealerships resulting in extremely high turnover of dealership personnel and massive revenue loses. Eventually Pendragon would be forced to either sell or walk away from many of their U.S. based dealerships.^{[citation needed]}

Merger of Reg Vardy

In January 2006, Lookers offered 875p per share for Reg Vardy. However, Pendragon offered a counter bid of 900p a share, which succeeded after Lookers decided it could not raise its bid.

Attempted takeover of Lookers

During the bidding battle for Reg Vardy, on 14 December 2005 Pendragon offered 1.1 new Pendragon shares for each existing Lookers share. Pendragon Group was the proposed name for the entity produced via the acquisition of Lookers and Reg Vardy with the existing Pendragon operations.

On 12 January 2006, Pendragon made a revised indicative offer to Lookers (the 'Revised Proposed Offer'). The exchange ratio in the Revised Proposed Offer was 1.15 new Pendragon shares for each Lookers share.^[1]

Group companies and brands

• Cadillac - sole UK distributor (exclusivity withdrawn by GM Summer 2007)
• Chevrolet Corvette - sole UK distributor (exclusivity withdrawn by GM Summer 2007)
• Harley Davidson - under the Stratstone brand, the largest dealer of Harley Davidsons in the UK

Pendragon has a large contract hire business in the UK, operating under the brands of Pendragon Contracts, Bramall Contracts and Vardy Contract Motoring.

Group companies

• CD Bramall
• Evans Halshaw
• Quicks.co.uk
• Stratstone
• Chatfields

Chronology

• 1920 - PJ Evans one of the largest Midlands car dealers
• 1945 - Broad Street Motors acquired
• 1978 - Purchase of the Halshaw Group
• 1988 - Four further acquisitions. Sixteenth Ford dealership acquired in Chorley, Lancashire
• 1998 - Acquired Pinewood Computers
• 1999 - Evans Halshaw acquired by Pendragon
• 2000 - Pendragon acquires Bauer Jaguar in Santa Ana Cafifornia for $9.4m and ten year lease. Pendragon will eventually be forced to close this once highly successful, family owned 30+ year old dealership, due to the failure of their management style.
• 2001 - Pendragon acquires 32 Lex Retail dealerships
• 2003 - Pendragon acquires Land Rover Dealerships in Mission Viejo and Newport Beach. Continuing their trend of over-paying for U.S. acquisitions.
• 2004 - Pendragon acquires CD Bramall
• 2005 - Acquires Saab Santa Monica California. Pendragon will be forced to walk away from this business two years later after heavy loses.
• 2006 - acquisition of Reg Vardy
• 2006 - Acquisition of Speeds motor group, taking three Chrysler Jeep dealerships and approximately eight Volvo dealerships.
• 2007 - acquisition of 24 Dixons sites
• 2007 - Closes Lincoln Mercury dealership in Irvine California.
• 2008 - BMW Announced that they would not be continuing their partnership with Pendragon.
• 2008 - IVECO Announced that they will not be continuing their partnership with Pendragon after 2010.
• 2008 - Pendragon looking to sell their Pinewood business for £60 million.
• 2009 - Pendragon closes Bauer Jaguar in Santa Ana California. Bauer was Pendragons's initial acquisition in the U.S. market and was once touted as being the "Jewel in the Crown" of its North American operations.
• 2009 - Pendragon announces a 200+ million pound sterling pre-tax loss for 2008. Stock value reduced to pennies.

References

External links

• Official site
• Companies House Company Number 02304195
• Corporate site for US ring in California
• Pendragon History

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