(Alliance News) - Inchcape PLC on Tuesday announced a joint venture agreement with the Cats Group of Companies in the Philippines, including the acquisition of a controlling stake in Cats.
The London-based automotive distributor said the agreement will expand the company's distribution footprint into the Philippines, building on its "well-established" presence in the Asia-Pacific region.
Cats is the leading luxury vehicle distributor in the Philippines, according to Inchcape.
The company said the joint venture will strengthen its partnerships with Mercedes-Benz, Chrysler, Dodge, Jeep, Jaguar and Land Rover.
Inchcape will acquire a 60% stake in Cats, with the remainder remaining under the ownership of the founding Ang family and its associates. Felix Ang will represent the family on the Cats board.
The deal, which Inchcape said is expected to be completed in the second half of 2023, could add about GBP120 million of annualised revenue, and improve the UK group's overall operating margin.
Inchcape Apac Chief Executive Officer Ruslan Kinebas said: "The Ang family has built long-standing successful relationships with its OEM brand partners and its customers. We are looking forward to building on their achievements and accelerating the company's digitalisation journey, driving the business to further success.
"This acquisition is a significant milestone for Inchcape in Apac and an excellent example of our 'accelerate' strategy in action; extending our global distribution leadership by expanding our [original equipment manufacturer] brand footprint in markets where vehicle penetration is low but expected to grow quickly."
Inchcape shares were down 0.3% trading at 923.00 pence per share on Tuesday morning in London.
By Harvey Dorset, Alliance News reporter
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