Strategic Distribution Acquisition in Estonia
Inchcape plc ("Inchcape" or the "Group")1, the leading independent multi-brand Automotive Distributor and Retailer with global scale, is pleased to announce that it has entered into an agreement to acquire premium Estonian automotive operations, focused on exclusive Distribution for BMW Group, from United Motors AS.
The acquisition will complement Inchcape's existing operations in Estonia, where the Group currently represents Jaguar, Land Rover and Mazda. The transaction enhances Inchcape's organic growth prospects in the Estonian market, consistent with the Ignite strategic objective of investing to accelerate growth. Furthermore the deal builds on our existing regional presence for BMW in Latvia and extends our global partnership with BMW to an eighth market.
The business to be acquired operates from four retail locations in Tallinn, Tartu, Pärnu and Kohtla-Järve, representing BMW in each location and Kia at two.
The transaction is subject to customary conditions and is expected to complete during June 2017.
Highlights:
· Distribution for BMW in Estonia, strengthening the regional platform for a core brand partner
· Strategic expansion of the Group's global partnership with BMW into an eighth market
· Attractive long-term growth prospects for vehicle demand in Estonia
· Further momentum behind the Group's strategic objective of investing to accelerate growth
Stefan Bomhard, Group CEO of Inchcape plc, commented:
"We are delighted by the opportunity to operate for BMW in Estonia, strengthening our Baltics presence and demonstrating continued momentum behind our Ignite strategy as we deliver on our objective of becoming the OEM's partner of choice.
Estonia has attractive long-term growth prospects and I am excited to add further scale to our existing platform, enabling the Group to deploy best practice and better leverage our regional scale. I strongly believe this deal will drive value creation for our shareholders and partners."
Ends.
Enquiries
Group Communications, Inchcape plc +44 (0) 20 7546 0022
Investor Relations, Inchcape plc +44 (0) 20 7546 8359
FTI Consulting (Jonathon Brill/Edward Westropp) +44 (0) 20 3727 1000
Notes
1 Reference to Inchcape plc includes all its worldwide subsidiaries
About Inchcape
Inchcape is a leading global premium automotive group, operating in 29 markets with a portfolio of the world's leading car brands in the fast-growing luxury and premium segments. 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 since 1958, is headquartered in London and employs around 16,000 people. www.inchcape.com
