Inchcape Share News (INCH)

(Alliance News) - Inchcape PLC announced on Tuesday that it has acquired Interamericana Trading Corp and Simpson Motors Ltd in a move to expand distribution into the Caribbean.

The London-based auto distributor and retailer said the acquired businesses are expected to add around GBP120 million of annualised revenue. Completions of the deals are anticipated in the first half of 2022.

Interamericana Trading Corporation currently distributes vehicles to over 30 territories including Jamaica, Trinidad and Tobago and Martinique. Simpson Motors is an automotive retailer operating in Barbados. Both companies distribute vehicles for Suzuki, Mercedes-Benz and Chrysler, with Simpson Motors also distributing vehicles for Subaru.

As a consequence, the deals are expected to expand Inchcape's geographic reach with Suzuki, Mercedes-Benz, Chrysler, and Subaru as well as broaden its original equipment manufacturer relationships.

Chief Executive Duncan Tait said: "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."

Shares in Inchcape were up 2.1% at 871.50 pence on Tuesday near midday in London.

By Heather Rydings; heatherrydings@alliancenews.com

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