We knew about this a few days ago. Barrons were about to be purchased by Discover Leisure. The ‘consideration’ for Barrons was £16m in cash and £4m in shares for the £86.3m turnover Lancashire group of motorhome dealers. This is all subject to an EGM on the 2nd July.
This is the biggest purchase for Discover, which was set up in 2003 to ‘exploit opportunities in the leisure industry’ - i.e. it would be acquisitive in this area. The management team were together at car retailers Dixon Motorss before joining DL.
From the circular issued to shareholders, the UK market in 2006 was 10,800 new motorhome sales, from a total European market of over 83,000 units. The two biggest markets, each having approximately 25% of the total, were France and Germany. The UK is fourth, behind Italy.
Of Barrons, they said that sales of motorhomes accounted for 31.8% of total sales, and of these, 61.6% were of new motorhomes. Turnover and profits for Barrons have stayed largely static over the past 3 years, and the impressive new team are almost certain to get the nod at the EGM.