Inchcape PLC is selling its UK dealer group to Group 1 Automotive, one of largest US retailers, for £346 million.
The dealer group sells a significant number of units through either its own broker channel or to independent brokers in the UK.
According to Group 1, Inchcape sold 63,500 new and used retail vehicles in 2023 and a further 24,000 corporate units.
The sale is expected to complete in the third quarter of 2024, according to the two firms.
Inchcape PLC has been concentrating on its global distribution business in recent years and recently stated it was considering a sell-off of its retail operations which make up only 18% of its total revenue and 7% of operating profits.
Group 1’s acquisition will see its UK division more than double in size.
UK operations 2023
Inchcape Retail
- Turnover £2.1bn
- Operating profit £49m
- Staff 3,600
- New car sales points 73
- Brands represented 12
Group 1 Automotive
- Turnover £3.0bn
- Operating profit £NA
- Staff 3,300
- New car sales points 55
- Brands represented 15
Inchcape PLC revealed in January that is was considering the sale of its dealer group in a bid to concentrate its efforts on global vehicle distribution.
The London listed business added that it would use £100m of the sale price to run a share buyback programme over the 12 months following the deal. At the time of going to press, Inchcape’s share price had risen 4%. Group 1 shares remained almost unchanged by the deal.
According to a statement by Group 1 Automotive, the deal includes property worth £220m.
“We are delighted to have reached an agreement to acquire Inchcape’s UK Retail operations, which we have long admired given the company’s reputation for exceptional customer service, attractive portfolio of OEM brand partners and high-quality management team. With our considerable automotive retail experience in the United States and the UK, we look forward to building on Inchcape’s strong industry relationships and leveraging our expertise to support our combined operations in their next phase of growth.”
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Tristan Young is an award winning journalist with more than 25 years’ experience reporting on the automotive industry focussing predominantly on fleet and retail. As a self-confessed petrol-head, Tristan has a weakness for car classifieds. When he’s not writing about the automotive industry, he can usually be found outdoors with a small pack of border collies.
