Dubai-backed automotive investor DxB Auto Investments has signalled the start of an ambitious global expansion strategy following the deal completion of a major part of the Harwoods Group.
The deal – which includes Jaguar Land Rover dealerships and BMW, Mini and Volvo authorised repairer operations in Basingstoke, Brighton, Crawley, Croydon, Southampton and Chichester – marks the first international investment by the Middle Eastern group and forms the foundation of a planned global automotive retail business targeting $3bn in annual turnover.
Discussing the acquisition with AM, DxB strategic adviser Mike Jones described the deal as the opening move in a long-term plan to build a premium-focused international dealership group.
Harwoods deal anchors strategy
The purchase of the Harwoods operations provides DxB with its first substantial foothold outside the UAE and establishes the platform from which the group intends to scale internationally. The sites will now operate under the new retail brand Southeast Motors in the UK.
The businesses were previously part of the family-owned Harwoods Group, which has been reshaping its portfolio while retaining franchises including Aston Martin, Bentley, McLaren and Audi.
In a statement announcing the deal, DxB founder Saeed Mohammed Saeed Al Ghandi said the group intended to build on the reputation of the acquired businesses.
“We are immensely proud to acquire these esteemed businesses. Harwoods has built a magnificent legacy, and we are committed to building upon those high standards,” he said.
“With fresh investment and our proven expertise, we are confident that Southeast Motors will set a new benchmark for quality and service in the UK automotive market.”
UK as first overseas market
DxB selected the UK as its first international market because of its stability and the opportunity to combine operational acquisitions with property investment.
Jones confirmed the group intends to expand through additional acquisitions over the coming years now that the UK dealership acquisition market had become more balanced after a period of intense consolidation activity.
“The market is probably in a slightly more stable place than it was,” he said. “There’s not the mad rush of buyers that there was a couple of years ago, so we know there will still be assets available for the right price.”
Premium customer strategy
Jones added that the group intends to bring expertise gained in the UAE’s high-end automotive market to the UK.
“The experience that we’ve gathered in the UAE gives the senior leadership team a strong focus on luxury customers and how to work with them,” he said. “The UK is an ideal market for our expansion, and this acquisition aligns perfectly with our strategy of building a strong presence in the premium and luxury segment,” he said.
The business plans to build representation across multiple premium marques over time. “We’re going to be speaking to all brands in the premium and luxury space,” Jones said.
The strategy comes as many premium manufacturers continue to reshape their UK retail networks and experiment with agency sales models.
Jones said Southeast Motors would remain flexible about dealership business models as the market evolves.
“There are pros and cons to both models,” he said. “Just because somebody has gone agency does not turn us off them or on them. We look at each opportunity as it comes up.”
Standalone structure to support expansion
The newly acquired Harwoods sites have been placed into a dedicated operating company that will serve as the foundation for future growth.
“We’ve set up a completely standalone business with the sites we bought and a small number of head office people from Harwoods,” he said, adding that depending on the scale of future deals, the integration could work either by absorbing new businesses into Southeast Motors or combining operations where appropriate.
DxB’s long-term objective is to build a global automotive retail group although Jones said the strategy is not tied to rigid acquisition targets or milestones. “The focus is simply on buying the right assets at the right price and at the right time,” he tells AM.
The expansion also reflects a broader diversification strategy for the Dubai-based investment group. While its automotive interests are currently concentrated in the Middle East – including Cadillac operations in Dubai.
Despite geopolitical tensions in the region, Jones said the group’s existing businesses continue to trade while leadership looks to expand internationally.
“The group has made the strategic decision to diversify some of its growth outside the Middle East,” he said.
The UK expansion is being led by Mark Jenkins as Southeast Motors chief executive, who has extensive international automotive retail experience.