REG - Inchcape PLC - Inchcape Derco Acquisition Completion

InchcapeAnnouncement

03/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230103:nRSC3989La&default-theme=true

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  +44 (0)7933 395 158  i (mailto:investors@inchcape.com) nvestors@inchcape.com
                                                                            (mailto:investors@inchcape.com)
 Finn Lawrence                       General queries   +44 (0)20 7546 0022

 Media enquiries (Brunswick Group):
 Kate Holgate / Chris Birt                             +44 (0)20 7404 5959  inchcape@brunswickgroup.com (mailto:inchcape@brunswickgroup.com)

 
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. (http://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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQEAAFFEFPDEFA