Scottish Motor Auctions (SMA), Scotland's largest motor auction group, has been bought in a multi-million-pound deal by a consortium of investors led by car finance specialists Bob Anderson and Kevin Bann.

Founded in 1976, Scottish Motor Auctions is the third-largest motor auction group in the UK. The company has four auction sites in Scotland - in Glasgow, Livingston, Kinross and Aberdeen - and one in England, at Newcastle Upon Tyne.

Commenting, Anderson, managing director of Scottish Motor Auctions, said: "We are delighted to be the proud owners of (the company). This is our first acquisition in this sector and we are looking forward to building on its success. As the largest motor auction group in the north, SMA is in a great position to expand and ultimately become the leading motor auction group in the UK."

The sellers were a group of shareholders led by former SMA chief executive Douglas Flynn.

Anderson and Bann have a long association with the Scottish automotive sector. In 1996, they founded sub-prime lender Direct Car Finance, a pioneer in providing loans to motorists struggling to obtain credit because of cash problems.

In its last financial year, ended October 31, 2006, Scottish Motor Auctions saw pre-tax profits soar to 1.75m from 1m in the previous 12 months.

Sales edged up from 6.9m in 2005 to 7.1m. SMA claims to auction some 100,000 cars a year.

The company's then directors wrote in the annual report: "Although competitive pressure has kept the level of charges static, the company has recorded increased volume. The motor industry has seen considerable consolidation over the year and this means that we are dealing with fewer customers and has increased our dependency on these companies."

Finance for the buy-out was provided by Alliance & Leicester Commercial Bank.

Scott Johnston, senior relationship lending manager at the bank, said: "This is a great acquisition with massive potential.

"We are delighted to be funding the deal and I look forward to working closely with Bob and Kevin as they expand and develop the business further."