The acquisition will enable Bethell to offer contract hire, maintenance and rental services to local authorities and private companies in the area.
As part of the deal, Bethell has won a £600,000 maintenance and accident repair contract to maintain vehicles from Littlewoods' fleet of about 500 cars and 1,100 light commercial vehicles based in the area, along with lorries over the next three years. It will also supply replacement parts.
Bethell also agreed to transfer 37 Littlewoods workshop staff to its own employment and to supply and deliver all the group's Business Express LDV light panel vans.
A Littlewoods spokesman said: 'Vehicle maintenance is not a core business activity of ours. By transferring the operation to a vehicle maintenance specialist, we protected the future of our workshop employees.'
The site currently has a turnover of £1.7 million, of which roughly half involves contracts for the maintenance of Littlewoods vehicles and the rest for customers including Freightliner, Lex Transfleet, Securicor, the National Blood Transfusion Centre and Burton's Biscuits.
Bethell Fleet Services hopes to double the site's turnover in the next 12 months.