News

Pendragon to Sell U.K. Motor Business and Leasing Business to Lithia Motors

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Andrew R. Michaud

• September 18, 2023

Pendragon, a U.K. motor dealership, has announced its plans to sell its entire U.K. motor business and leasing business to Lithia Motors for £250 million ($309.6 million). As part of this transaction, Pendragon will change its name to Pinewood Technologies PLC and enter into a strategic partnership with Lithia.

Pinewood Division to Focus on Software-as-a-Service

Following the sale, Pendragon's Pinewood division, which operates its proprietary dealer management software business, will become a standalone entity. The division will retain its existing listing in London and shift its focus to providing software-as-a-service solutions.

Strategic Partnership and Joint Venture

As part of the strategic partnership between the two companies, Lithia will roll out the Pinewood business to its existing 50 U.K. sites. Additionally, a joint venture will be created to accelerate Pinewood's entry into the North American dealer management software market.

Cash Dividend for Shareholders

As a result of the transaction, Pendragon shareholders can expect to receive a cash dividend of approximately £240 million. This dividend will consist of 16.5 pence in cash per share, a retained 83.3% ownership in the continuing business (initially valued at around 10.3 pence per share), and a direct interest in the North American joint venture (initially valued at around 0.6 pence per share).