International law firm CMS has advised long standing client Pendragon on the proposed disposal of its UK motor business and leasing business, which includes the Evans Halshaw, Stratstone and CarStore brands, to Lithia Motors (Lithia) for £280 million.
The disposal also includes the transfer of Pendragon’s UK pension plan and defined benefit pension scheme. As part of the deal, Pendragon and Lithia will be entering into a strategic partnership in relation to the North American DMS market and Lithia will be taking a significant equity stake in Pendragon. The deal, which is subject to conditions, including Pendragon shareholder approval, is expected to complete in Q4 2023.
CMS Corporate Partner and Pendragon client relationship partner James Parkes commented: “CMS has advised Pendragon for more than two decades and it is a privilege to have worked with them to deliver this complex and transformational deal with Lithia. The transaction provides a unique opportunity for Pinewood to develop its best-in-class product as a standalone business in exciting new markets and we wish Pendragon and Lithia every success in their new partnership.”
The CMS team was led by partners James Parkes and Kate Badr (Corporate); with support from Alan Nelson (Commercial); Andy Quayle and Sarah McMaster (Share Incentives); Mark Joscelyne and Aaron Fairhurst (Tax); Russell Hoare (Competition); Johanna Clarke (Pensions); Alex Patience (Banking); and Bill McCaffrey and Julie Devlin (Regulatory).
