Distribution acquisition and update on disposals

RNS Number : 9463Z

Inchcape PLC

16 January 2020

 

Acquisition of Mercedes-Benz Passenger car and private vans Distribution in Colombia;

Update on Disposals

Further highlights meaningful strategic progress

Inchcape plc ("Inchcape" or the "Group"), the leading independent multi-brand Automotive distributor with global scale, has agreed to acquire Daimler's Mercedes-Benz passenger car and private vans distribution operations in Colombia, currently operated by Daimler Colombia S.A. The transaction enterprise value, which is undisclosed, represents approximately 8x 2019E EV/EBIT.  This follows the announcement made on 7^th November 2019 that Inchcape has agreed to acquire Autolider, the distributor of certain Daimler brands such as Mercedes-Benz passenger and commercial vehicles, Freightliner and Fuso in Uruguay and Mercedes-Benz passenger and commercial vehicles in Ecuador.  The purchase of these businesses represents a strategic transformation of Inchcape's partnership with Daimler to include distribution contracts after a 30-year Retail-only partnership, a further milestone for Inchcape's OEM Partner of Choice strategy.  Together these acquisitions have enabled us to create a scale regional platform with Daimler.

In Colombia, where Inchcape has operated since 2016, Inchcape will become the Mercedes-Benz distributor of passenger cars and private vans, adding to its Subaru, Hino and JLR operations.  This acquisition further enhances the LatAm platform which has grown from operating BMW in two markets to now representing BMW, Mercedes-Benz, Hino, Subaru, Suzuki and JLR, as well as Freightliner, Fuso and a range of Chinese OEMs, in eight markets across the region.

This acquisition represents Inchcape's 12th Distribution business win since 2016 and highlights the compelling proposition Inchcape can provide to OEM partners.  It follows the Retail-only disposals announced this year which will generate c.£250m of proceeds on completion.  The focus on our core Distribution capabilities and the disciplined allocation of capital are consistent with Inchcape's strategy of long-term sustainable growth.

 

Recent transaction updates

Below we provide an update on the completion dates relating to the recent strategic transactions.

·    Australia retail site disposals announced 11^th September 2019 completed on 2 December 2019

·    China retail disposal announced 2^nd October 2019 completed on 12 December 2019

·    IFS (UK) disposal announced on 10^th October 2019 completed on 31 December 2019

·    Acquisition of Autolider announced on 7^th November 2019 completed on 2 December 2019

Ends.

 

Enquiries

Group Communications, Inchcape plc                                               [phone]

Investor Relations, Inchcape plc                                                        [phone]

Financial PR, Instinctif (Mark Garraway)                                           [phone]

About Inchcape

Inchcape is the leading independent multi-brand Automotive Distributor and Retailer, operating in 32 markets with a portfolio of the world's leading car brands. Inchcape has diversified multi-channel revenue streams including sale of new and used vehicles, parts, service, finance and insurance. The Company has been listed on the London Stock Exchange since 1958, is headquartered in London and employs around 18,600 people.

Inchcape has a multi-layered growth story, with our highly cash generative and attractive Distribution business at its core. Together with the company's Ignite strategy which focuses on business optimisation initiatives, new contract opportunities, as well as capitalisation of future industry trends, Inchcape can deliver growth for shareholders through organic progress, consolidation and cash returns.

www.inchcape.com

Certain information included herein, such as financial estimates, projections and forecasts, contains forward-looking statements which involve risk and uncertainty, such as business, economic and regulatory changes, which could cause actual results to differ materially from such estimates, projections and forecasts. No representation or warranty is given as to the achievement or reasonableness of any forward-looking statements discussed in this document. This document is delivered as at the date specified.

 

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