Inchcape plc (LON: INCH), the leading independent multi-brand Automotive distributor with global scale, announced today that it has agreed to acquire Daimler’s Mercedes-Benz passenger car and private vans distribution operations in Colombia, currently operated by Daimler Colombia S.A. The transaction enterprise value, which is undisclosed, represents approximately 8x 2019E EV/EBIT. This follows the announcement made on 7th November 2019 that Inchcape has agreed to acquire Autolider, the distributor of certain Daimler brands such as Mercedes-Benz passenger and commercial vehicles, Freightliner and Fuso in Uruguay and Mercedes-Benz passenger and commercial vehicles in Ecuador. The purchase of these businesses represents a strategic transformation of Inchcape’s partnership with Daimler to include distribution contracts after a 30-year Retail-only partnership, a further milestone for Inchcape’s OEM Partner of Choice strategy. Together these acquisitions have enabled us to create a scale regional platform with Daimler.
In Colombia, where Inchcape has operated since 2016, Inchcape will become the Mercedes-Benz distributor of passenger cars and private vans, adding to its Subaru, Hino and JLR operations. This acquisition further enhances the LatAm platform which has grown from operating BMW in two markets to now representing BMW, Mercedes-Benz, Hino, Subaru, Suzuki and JLR, as well as Freightliner, Fuso and a range of Chinese OEMs, in eight markets across the region.
This acquisition represents Inchcape’s 12th Distribution business win since 2016 and highlights the compelling proposition Inchcape can provide to OEM partners. It follows the Retail-only disposals announced this year which will generate c.£250m of proceeds on completion. The focus on our core Distribution capabilities and the disciplined allocation of capital are consistent with Inchcape’s strategy of long-term sustainable growth.
Recent transaction updates
Inchcape plc provide an update on the completion dates relating to the recent strategic transactions.
· Australia retail site disposals announced 11th September 2019 completed on 2 December 2019
· China retail disposal announced 2nd October 2019 completed on 12 December 2019
· IFS (UK) disposal announced on 10th October 2019 completed on 31 December 2019
· Acquisition of Autolider announced on 7th November 2019 completed on 2 December 2019