REG - Inchcape PLC - Inchcape expands its distribution footprint

InchcapeAnnouncement

28/03/2022 07:00

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RNS Number : 1527G  Inchcape PLC  28 March 2022

28 March 2022

 

Inchcape expands its distribution footprint in Americas;
adds Porsche, Volvo and Jaguar Land Rover in Chile
 
Inchcape plc, ("Inchcape" or "the Group"), the leading global automotive distributor, announces the acquisition of Ditec, the distributor of Porsche, Volvo and Jaguar Land Rover in Chile.

The deal expands Inchcape's brand footprint, adding first-time distribution
relationships with Porsche and Volvo, and further broadens its coverage with
Jaguar Land Rover to 12 markets from eight in 2019.

Ditec will add c.£130m of annualised revenue to the Americas & Africa
region, the Group's fastest growing region, with pro-forma revenue of
£1.3bn(1), which has grown both organically and by acquisition from c.£300m
in 2016.

 

Duncan Tait, Group CEO, commented:

"We are pleased to announce another distribution acquisition in the Americas,
expanding our growing footprint in the region and adding Porsche and Volvo,
two leading premium brands to our list of OEM partners. This acquisition is a
good example of our Accelerate strategy in action; leveraging our global
distribution leadership to expand our footprint with both existing and new OEM
partners - and using our distribution business as a platform to capture more
of a vehicle's lifecycle value.

The automotive distribution sector is highly fragmented and set for
substantial consolidation. This is in part driven by digitalisation, but also
the value of leveraging data and consumer insights across markets and regions,
and OEMs' desire for fewer, stronger partners. The combination of our leading
global position, our digital and data capabilities and our strong financial
position makes Inchcape a natural consolidator. This acquisition underpins our
strategy to further accelerate growth through consolidation."

 

Sebastián de Cárcer, Ditec President, commented:

"Following 60 successful years of operation, the time has come for Ditec to
enter the next phase of its growth journey. I believe that with Inchcape we
have found the best possible partner to take us forward.

Inchcape's leadership in digital and data will help propel the business into
the new age of automotive distribution, and drive the best outcomes for
consumers, colleagues and OEM partners. I am looking forward to seeing the
business grow in the months and years ahead."

 

 

Further details of the transaction:

Inchcape has acquired a 70% stake in Ditec, with the remainder being retained
by Sebastián de Cárcer. The transaction remains subject to customary
conditions, with completion anticipated in Q2 2022.

 

 

1: including the acquisitions of Simpson Motors, ITC and Ditec, at 2021
exchange rates

 

 
Financial calendar
 Q1 trading update                         28(th) April 2022
 Ex-dividend date for 2021 final dividend  12(th) May 2022
 Annual general meeting                    19(th) May 2022
 Half year results                         28(th) July 2022
 Q3 trading update                         27(th) October 2022

 
Contacts
 Inchcape plc:
 Raghav Gupta-Chaudhary              Investor queries  +44 (0)7933 395 158  investors@inchcape.com (mailto:investors@inchcape.com)
 Finn Lawrence                       Media queries     +44 (0)20 7546 0022

 Media enquiries (Brunswick Group):
 Kate Holgate / Helen Smith                            +44 (0)20 7404 5959  inchcape@brunswickg (mailto:inchcape@brunswickgroup.com) roup
                                                                            (mailto:inchcape@brunswickgroup.com) .com (mailto:inchcape@brunswickgroup.com)

 
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 14,500 people
globally. www.inchcape.com (https://www.inchcape.com) .

 
About Inchcape Americas

Inchcape Americas was established in 1994, initially distributing BMW vehicles
and parts in Chile and Peru. The business has since expanded significantly,
catalysed by the acquisition of Indumotora in 2016 which provided a platform
for growth in the region. It now distributes vehicles and parts in 10 markets
across South and Central America, for a much larger portfolio of OEMs: BMW,
Mercedes-Benz and Daimler, Subaru, Suzuki, DFSK, Jaguar, Land Rover, Geely,
and various commercial vehicle partners.

The Americas is one of the Group's fastest growing regions. This is in part
due to the current low motorisation rates (number of vehicles per capita),
which is expected to rise considerably as the economies continue to prosper.
According to IHS, new car volumes across the Americas is forecast to grow 6%
per annum by 2026 (versus c.4% per annum for the globe). In addition, the
business has a solid track record of growing by acquisition and given the
highly fragmented nature of the sector (hundreds of independent, family-owned,
distributors), the expectation is for continued inorganic growth.

The business is headquartered in Santiago, Chile and employs around 3,000
people across the region.

 

About Ditec

Ditec, founded in 1959 by Fernando de Cárcer among others, is an independent
distributor of several premium automotive brands in Chile. It provides
distribution services for Porsche, Volvo and Jaguar Land Rover. For the past
25 years the business has been run by Sebastián de Cárcer, the son of the
founder.

 

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