Sherwoods has announced the purchase of Springfield Motor Group and Durham Peugeot.
This incorporates the Peugeot, Citroen and Suzuki franchises into the business.
The businesses will be rebranded as Sherwoods Gateshead and Sherwoods Durham, Partners are describing the deal as the “first chapter” in the creation of a Sherwoods group of motor dealers across the North-east region.
The deal includes a large mechanical workshop, bodyshop and used car outlet on Washington’s Crowther Industrial Estate, which will be run as a separate business called Sherwoods Car Store.
The combined business expects to have a turnover of £65m a year and secures the jobs of 120 employees.
Sherwoods managing director Simon MacConachie said: “We are delighted to have [acquired] two cracking businesses, and [to be] working with great manufacturing partners, in superb locations in the North-East.
“This is the first chapter – we would love to work with other brands, and discussions about further opportunities are continuing. We would particularly like to return the Sherwoods name to the south of the region where we are so well known.
“This is an exciting time to be involved with Peugeot because they are at a high point in the cycle of their product range, and their attitude towards the dealer network is impressive.”
Chris Elvidge, Sherwoods chairman, added: “Our aim is to build on solid foundations, so we are always interested in hearing from sales people or technicians who want to join our team in what will be an exciting future.”