Pendragon sells UK motor, leasing arm for £250m

(Sharecast News) - Car dealership operator Pendragon on Monday said it was selling its UK motor and leasing business to US firm Lithia for £250m. The two companies also agreed to form a partnership including the rollout of Pinewood - Pendragon's dealer management software (DMS) business - to Lithia Motors' existing 50 UK sites and create of a joint venture to accelerate Pinewood's entry into the North American DMS market.

Pendragon said £240m of the sale proceeds will be returned to shareholders. The company will also spin out the DMS business and change its name to Pinewood.

Reporting by Frank Prenesti for Sharecast.com