Member News
A car dealership chain with sites across Northumberland, The Borders and East Lothian in Scotland has been sold to the internal management team.
Tustain Motors, which was incorporated in 2009 and employs 112 staff, was acquired through a management buy-out.
The deal sees David Storey and Brian Baxter, who joined as directors in the same year, exit the operational business and move to a co-chairman role.
UK top 10 accountancy and business advisory firm Azets acted on behalf of Tustain Motors.
Azets’ corporate finance team on the deal comprised David Foreman, Partner, and colleague Oliver Williams, alongside tax advisory services from the Azets tax team.
David Foreman said: “Tustain Motors is an extremely successful operator in the region’s automotive retail sector, with various franchised dealerships.
“It was a pleasure to support exiting owners David Storey and Brian Baxter, who have been growing the business over the past 16 years, over the course of this transaction.”
Lee Humble, Head of UK Corporate Finance at Azets, based in Newcastle, added: “Tustain has been a long-standing client of ours in the North East region and it has been a pleasure watching the business go from strength to strength.
“Seeing businesses thrive against the current economic background is incredibly inspiring, and Tustain Motors has strong foundations for a very exciting future with the internal team taking things forward with a renewed dynamism.
“It’s great to see succession planning for a regional powerhouse and we wish them all the best for the next chapter and look forward to supporting them in the future.”
Mr Storey and Mr Baxter said: “David and the Azets team have been a great support helping us achieve a management buy-out.
“From the first time we met with David to discuss the project, we had full confidence in the Azets team.
“Throughout the entire process, whether on accountancy and forecasting, tax advice or raising finance, the advice, support and handholding was exemplary.
“Nothing was too much trouble and they were always available and on hand; a great team to deal with.”
Tustain Motors, named after the retired co-founder John Tustain, is headquartered at North Seaton Industrial Estate, Ashington, Northumberland.
There are seven car dealerships, with a range of hundreds of cars and commercial vehicles. Sites are also official Bosch Care Service Centres.
Other sites include Haddington and Hawick in Scotland, Berwick-upon-Tweed, Alnwick and Cramlington.
Based on last year’s accounts, pre-tax profits for Tustain Motors were £1.1m on a turnover of nearly £41m.
Lawyers involved on the legal side were Mincoffs in Newcastle.
Details of the management buy-out, including funding arrangements, were undisclosed.
Azets’ North East offices are in Durham, Newcastle and Wynard.
