Inchcape APAC Acquisition

RNS Number : 8427U

Inchcape PLC

31 March 2023

 

31 March 2023

Inchcape continues to expand its distribution footprint in APAC;

adds Mercedes-Benz to its existing presence in Indonesia

Inchcape plc, ("Inchcape" or "the Group"), the leading global automotive distributor, announces an agreement to acquire Mercedes-Benz's Indonesian business with Inchcape's local partner, Indomobil. The business has been operated by Mercedes-Benz since 1970, and includes both distribution and assembly operations.

The deal will expand Inchcape's existing distribution footprint in Indonesia, continuing to build on its well-established and growing presence in the APAC region. It will also strengthen Inchcape's relationship with Mercedes-Benz, following a number of distribution contract wins in the Americas region in recent years, as well as in the Philippines (announced earlier this year).

Ruslan Kinebas, CEO Inchcape APAC, commented :

" We are very pleased to be expanding our presence in Indonesia with the acquisition of Mercedes Benz's Indonesian operations in a joint venture with Indomobil, with whom we already have a strong in country distribution partnership. We look forward to combining our local expertise with our leading digital and data capabilities to grow the business further.

This acquisition is another good example of Inchcape's role as the partner of choice for OEMs as they work to optimise their global operations . The deal continues Inchcape's strong momentum in the APAC region, which is underpinned by an attractive pipeline of opportunities both in markets which are new to Inchcape and where we have established operations ."  

Further details of the transaction :

§	Inchcape will acquire 70% of the equity of existing Mercedes-Benz subsidiaries based in Indonesia with Indomobil acquiring the remaining 30%.
§	The business is expected to add c.£200m of annualised revenue and be accretive to the Group's operating margin.
§	The transaction remains subject to customary conditions with completion anticipated in late 2023.
§	All transactions1 announced to date are expected to complete by year end. The Group anticipates its pro-forma leverage position at the end of 2023 to be unchanged from the end of 2022 position (0.6x Net debt/ EBITDA).

^{1: Liabilities owing to Derco's previous owners, CATS, Mercedes-Benz Indonesia}

About Inchcape plc

Inchcape is the leading global automotive distributor, with operations across six continents. Through the unique expertise of our people, our suite of cutting-edge technology products, and our approach to advanced data analytics, we provide the platform for the world's leading mobility companies to accelerate their ambitions in markets where we and our partners want to succeed.

Our distribution platform connects the products of mobility companies with customers, and our responsibilities span from product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels.

Inchcape is driven by its purpose of 'bringing mobility to the world's communities, for today, for tomorrow and for the better'. We are committed to making a positive contribution to the communities in which we operate, for our people, for society and for the planet. The Group is headquartered in London and employs around 19,000 people globally.

www.inchcape.com

About Inchcape APAC

Inchcape's modern presence in Asia-Pacific started in 1967 with the acquisition of Borneo Motors, a company founded in 1925 to distribute vehicles in Singapore. Inchcape APAC has since expanded significantly across the region and today distributes new vehicles and parts in Australia, Brunei, Guam, Hong Kong, Indonesia, Macau, New Zealand, Saipan, Singapore and Thailand for a large portfolio of OEM brands: Toyota Motor Corporation, Subaru, Suzuki, Jaguar Land Rover, BMW Group, Chevrolet, Great Wall Motors, Peugeot Citroen, Harley-Davidson, Daimler Trucks and Buses, Hino and other commercial vehicle partners. In 2021, Inchcape plc opened a Digital Delivery Centre in the Philippines, providing digital and data analytics support and insights for the Group. Inchcape APAC is headquartered in Singapore and employs around 3,400 people across the region.

About Indomobil

PT Indomobil Sukses Internasional Tbk (Indomobil) is the holding company of an integrated automotive business group, with a number of subsidiaries at the forefront of the Indonesian automotive industry. Indomobil has the largest automotive distribution network in Indonesia, with more than 300 dealerships. Aside from automotive distribution, Indomobil also has more than 8,000 points of network on after-sales services, parts distribution, vehicle financing services, and other supporting services in the market.

As a fully integrated automotive company, a passenger vehicle trademark license holder, sales distributor and after-sales service provider, Indomobil is also a specialist vehicle assembler and parts/components manufacturer. Operations span passenger vehicles, motorcycles, commercial vehicles, heavy duty equipment and machinery. They also provide after-sales and other services to support the automotive industry such as logistics, vehicle financing, car rental services, fuel distribution, amongst others.

Indomobil aims to become not only the largest automotive conglomerate in Indonesia, but also to provide the best product and services for customers and create a positive impact to all stakeholders. Indomobil currently employs more than 13,500 employees across Indonesia, and is part of Salim Group.

www.indomobil.com

Enquiries

Inchcape plc - Investor Relations
Raghav Gupta-Chaudhary	[phone] [e-mail]
Brunswick Group - Media Enquiries
Kate Holgate, Helen Smith	[phone] [e-mail]

 

END

 

 

ACQZZGFFVGLGFZM