Inchcape APAC Acquisition

RNS Number : 8962M

Inchcape PLC

17 January 2023

 

17 January 2023

Inchcape to expand its distribution footprint in APAC; entering the Philippines with seven brands

Inchcape plc, ("Inchcape" or "the Group"), the leading global automotive distributor, announces an agreement to enter into a joint venture with CATS Group of Companies ("CATS"), the leading distributor of luxury vehicles in the Philippines, including the acquisition by Inchcape of a controlling stake in CATS.

The deal will expand Inchcape's global distribution footprint as it enters the Philippines, further building on its well-established presence in the APAC region. It will also strengthen the Group's geographic reach and partnerships with Mercedes-Benz, Chrysler, Dodge, Jeep, Jaguar and Land Rover, and broaden its relationships, adding RAM to its list of brand partners.

Ruslan Kinebas, CEO Inchcape APAC, commented :

"We are very pleased to be entering the Philippines, a country with a large and fast-growing economy, where CATS is the leading distributor of luxury vehicles. The Ang family has built long-standing successful relationships with its OEM brand partners and its customers. We are looking forward to building on their achievements and accelerating the company's digitalisation journey, driving the business to further success.

This acquisition is a significant milestone for Inchcape in APAC and an excellent example of our Accelerate strategy in action; extending our global distribution leadership by expanding our OEM brand footprint in markets where vehicle penetration is low but expected to grow quickly.

The combination of Inchcape's leading global position and digital and data capabilities means we are well placed to successfully execute our strategy to accelerate growth both organically and via industry consolidation."

Further details of the transaction :

§	Inchcape will acquire a 60% stake in CATS, with the remainder being owned by CATS' founding Ang family and its associates, who will also continue to be represented on the CATS Board, by Felix Ang, and in the management team.
§	CATS is expected to add c.£120m of annualised revenue and be accretive to the Group's operating margin.
§	The transaction remains subject to customary conditions with completion anticipated in the second half of 2023.

About Inchcape plc

Inchcape is the leading independent multi-brand global automotive distributor, operating in over 40 markets and territories with a portfolio of the world's leading automotive 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 (INCH) since 1958, and is classified within the 'Business Support Services' sector. The Group is headquartered in London and employs around 20,000 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, Hong Kong, Indonesia, Guam, 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 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 CATS

CATS was founded in 1989 by Felix R. Ang, originally as Car Accessories, Tires, and Servicentre. In 2004 it became the distributor of several luxury vehicle brands: Mercedes-Benz, Chrysler, Jeep, Dodge and RAM, and in 2017 it was awarded the distribution rights for both Jaguar and Land Rover. It also operates dealerships for Harley-Davidson Motorcycles and Mazda. The company has 450 employees across its distribution and retail operations.

Enquiries

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

 

END

 

 

ACQGZGMMRVMGFZM