REG - Inchcape PLC - Inchcape APAC Acquisition

InchcapeAnnouncement

31/03/2023 07:00

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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 transactions(1) 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
(file:///C%3A/Users/finn.lawrence/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/QNPKNXC8/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 (http://www.indomobil.com)

Enquiries

 Inchcape plc - Investor Relations
 Raghav Gupta-Chaudhary             +44 (0)7933 395 158

                                    investors@inchcape.com (mailto:investors@inchcape.com)
 Brunswick Group - Media Enquiries
 Kate Holgate, Helen Smith          +44 20 7404 5659

                                    inchcape@brunswickgroup.com (mailto:inchcape@brunswickgroup.com)

 

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