Inchcape plc, (LON:INCH), the leading independent global automotive distributor, has announced an agreement to acquire Interamericana Trading Corporation (ITC) and Simpson Motors from the Simpson Group.
The deal will expand Inchcape’s global footprint with entry into the Caribbean, further building on its presence in the Americas. It will also strengthen the Group’s geographic reach with Suzuki, Mercedes-Benz and Subaru, and broaden its OEM relationships, with the addition of Chrysler to its list of brand partners.
The acquired businesses are expected to add c.£120m of annualised revenue, and will be accretive to Group margins. The transaction remains subject to customary conditions, including receipt of local regulatory approvals, with completion anticipated in H1 2022.
Duncan Tait, Group CEO of Inchcape, commented:
“We are pleased to announce an agreement to further expand our distribution footprint in the Americas, with entry into the Caribbean. This acquisition is a good example of our Accelerate strategy in action; leveraging our global distribution leadership to expand into new markets with both existing and new OEM partners.
As we detailed at our Capital Markets Day, automotive distribution is highly fragmented, and there is a huge landscape of opportunity for Inchcape to drive consolidation. The combination of our leading global position, our digital and data capabilities, and our strong financial position, means we are well-placed to accelerate our growth ambition.”