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.”
Broker News Awards 2024 – the winners
The Broker News Awards 2024 – supported by Fleet Procure – produced outstanding winners, with Synergy taking the Broker of the Year title
Broker News Newsletter 24 April 2024
Catch up on the latest leasing broker news in the 24 April 2024 Broker News newsletter
Leasing broker fleet down, but BCH is rising: analysis of BVRLA broker survey H2 2023
Analysis of the BVRLA leasing broker survey for H2 2023 shows the broker fleet is down, but BCH is on the rise
Novuna Vehicle Solutions and Select Lease by Mobilize add support to the Broker News Awards
Novuna Vehicle Solutions and Select Lease by Mobilize add support to the Broker News Awards 2024, which takes place in London on 25 April
Guest list for the Broker News Awards 2024
The guest list for the Broker News Awards 2024 contains a great list of the 85 leasing brokers, funders, suppliers and OEMs attending
Leasys UK now offers comprehensive short term rental service
Leasys UK announces a comprehensive short-term rental service. Customers can choose from a diverse range of vehicles
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.
