Last checked at 28 Mar 2022 07:00
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 £1.3bn1, 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 | 28th April 2022 |
Ex-dividend date for 2021 final dividend | 12th May 2022 |
Annual general meeting | 19th May 2022 |
Half year results | 28th July 2022 |
Q3 trading update | 27th October 2022 |
Contacts
| Inchcape plc: |
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Raghav Gupta-Chaudhary | Investor queries | +44 (0)7933 395 158 | investors@inchcape.com |
Finn Lawrence | Media queries | +44 (0)20 7546 0022 |
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| Media enquiries (Brunswick Group): |
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Kate Holgate / Helen Smith |
| +44 (0)20 7404 5959 | 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.
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.