Cazoo Expands Portfolio with Acquisition of Vans365
Cazoo, the online car retail powerhouse, is making waves again with its latest move into the commercial vehicle market. In a strategic acquisition, Cazoo has purchased Vans365, a prominent online commercial vehicle retailer in the UK. The deal is set to reshape the online automotive market, further expanding Cazoo’s already impressive offerings.
A Natural Expansion
Cazoo, known for simplifying the process of buying and selling cars online, has been steadily gaining ground in the European automotive market. Since its launch less than two years ago, the company has sold over 40,000 cars, winning over consumers with its convenient and streamlined approach. Now, Cazoo is setting its sights on the lucrative commercial vehicle sector. With over one million vans sold annually in the UK, this expansion aligns perfectly with their mission to offer a seamless online experience for all types of vehicles.
Introducing Vans365
Vans365, the company acquired by Cazoo, is a respected player in the online commercial vehicle retail space. Based in Bristol, they have a dedicated team of in-house technicians and customer service specialists. Their impressive track record includes buying and selling hundreds of vans every month and achieving a noteworthy Trustpilot score of 4.8, reflecting their commitment to customer satisfaction.
The Strategic Move
The acquisition of Vans365 represents a synergistic partnership. Cazoo’s world-class online platform and brand will join forces with Vans365’s expertise and established relationships in the commercial vehicle market. This collaboration is expected to accelerate Cazoo’s planned launch into the commercial vehicle sector later this year.
The Numbers
The deal comes at a cost of £6.5 million in cash, with Vans365 boasting 2021 revenues of approximately £14 million and an EBITDA margin of around 9%. While the transaction awaits FCA approval, it is anticipated to have minimal impact on Cazoo’s FY2021 operating results.
A Word from the CEOs
Alex Chesterman OBE, Founder & CEO of Cazoo, expressed enthusiasm about the move, highlighting that the commercial vehicle market in the UK is worth a staggering £16 billion annually. This acquisition expands Cazoo’s reach and aligns perfectly with their mission to revolutionize online vehicle sales.
Jordan Franklin, Managing Director of Vans365, emphasized their shared commitment to customer satisfaction, underlining the exciting opportunity to elevate their online proposition in partnership with Cazoo.
Expanding Horizons
With this acquisition, Cazoo is poised to diversify its offerings and further disrupt the automotive retail landscape. As one of the fastest-growing businesses in Europe, Cazoo’s expansion into the commercial vehicle market is a testament to their ambition and adaptability. Customers can look forward to an extended range of options, all available on the Cazoo website.
