Inchcape Derco Acquisition Completion

RNS Number : 3989L

Inchcape PLC

03 January 2023

 

3 January 2023

Completion of the acquisition of Derco

Inchcape plc ("Inchcape" or the "Company"), the leading independent multi-brand global automotive distributor, announces that it has successfully completed the £1.3bn acquisition of Derco ("Completion"), originally announced on 28 July 2022. The acquisition extends Inchcape's global leadership in automotive distribution through the combination of Inchcape Americas with Derco, the largest independent automotive distributor in Latin America. As announced on 28 November 2022, having been nominated by the Family Owners, Juan Pablo Del Río will join the Inchcape Board as a non-executive director with effect from Admission.

Duncan Tait, Group Chief Executive, Inchcape, said:

"When we launched our Accelerate strategy in November 2021 we set an ambition to extend our global leadership in automotive distribution, and to become the undisputed number one choice for OEMs. The completion of the transformational acquisition of Derco is an important step in our ambitious growth journey.

The combination brings together two best-in-class operators in highly attractive and fast growth markets within Latin America, and significantly expands our OEM brand portfolio. The enlarged business will provide exciting opportunities for our colleagues, OEM partners, dealers and consumers. We will also leverage Inchcape's leading digital and data capabilities, to grow the distributon business and capture a greater share of the vehicle lifecycle value."

Nigel Stein, Chairman, Inchcape, said:

"We are delighted to welcome Juan Pablo to the Board. His tremendous experience of both automotive distribution and of business generally in Latin America, will be a valuable addition to the Inchcape Board."

Juan Pablo Del Río, Inchcape Non Executive Director elect, said:

"Inchcape and Derco are highly complementary businesses, enjoying a strong strategic and cultural fit. The combined strengths of both companies, including Inchcape's undisputed leadership in digital and data, will provide exciting opportunities for colleagues across the enlarged business.

I am looking forward to working with Nigel and the Board, to support Duncan and the executive team to drive the next phase of Inchcape's exciting growth strategy."

In connection with Completion, 38,513,102 ordinary shares of 10 pence each in the capital of the Company (the "Consideration Shares") were allotted and issued to the Family Owners, subject only to admission of the Consideration Shares to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed securities ('Admission').

Admission is expected to occur at 8.00 a.m. (GMT) on Wednesday  4 January 2023. Following the allotment and issuance of the Consideration Shares, the Family Owners will hold a 9.3% shareholding in Inchcape.

Inchcape FY22 outlook

Inchcape's financial performance in 2022 is expected to be inline with the outlook issued on 27 October 2022: FY22 adjusted PBT from continuing operations towards the top end, or slightly above, the previously guided range (£350-370m) at prevailing FX rates (providing a c.£15m translation tailwind to 2022 Group PBT).

Inchcape FY22 results date

Following completion of the acquisition, Derco will be consolidated within Inchcape's financial statements as of 31 December 2022. Inchcape plc expects to report its full year 2022 results towards the end of March.

 

Contacts

Inchcape plc:
Raghav Gupta-Chaudhary	Investor queries	[phone]	i [e-mail]
Finn Lawrence	General queries	[phone]
Media enquiries (Brunswick Group):
Kate Holgate / Chris Birt		[phone]	[e-mail]

 

About Inchcape

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 14,500 people globally.

www.inchcape.com.

Juan Pablo Del Río, Inchcape Non Executive Director elect

Juan Pablo Del Río is currently on the Board of Cruzados S.A.D.P. (a company with shares listed on the Santiago Stock Exchange) and is chairman of Sodimac S.A, a position he has held since 1986.  He was a director of Falabella S.A. between 2015 and 2020 and has held a number of senior leadership roles across a range of companies within the automotive, retail and real estate sectors in Latin America.

 

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