BOSSES at Caledonia Motor Group are gearing up for a management buy-out following talks with its current owners - the multi-millionaire Barclay Brothers. Chief executive Paul Batty says the negotiations for the buy-out are 'very advanced', although a date or price for the sale has not yet been announced. PriceWaterhouse Coopers is handling management buy-out negotiations.

The buy-out move was announced as Caledonia Motor Group sold off 12 dealerships for £18.8 million to Reg Vardy. The dealerships, located in the West of Scotland, North East of England and Yorkshire, the Midlands and the South East hold franchises for Renault, Citroen, Vauxhall, Honda, and Fiat and had a combined turnover of £88.2 million. The sale brings the number of Caledonia Motor Group dealerships down to 30.