Acquisition of Mercedes-Benz Distributor in Uruguay and Ecuador
Significant strengthening of LatAm platform through transformational Daimler partnership
Inchcape plc (“Inchcape” or the “Group”), the leading independent multi-brand Automotive distributor with global scale, has agreed to acquire Autolider, a distributor of Daimler brands, for £47m. Autolider is the distributor of Mercedes-Benz passenger and commercial vehicles in both Uruguay and Ecuador. Autolider is also the distributor of Daimler’s Freightliner and Fuso brands in Uruguay.
- Builds further on the recently strengthened Latin America platform, adding Uruguay and Ecuador; brings Inchcape to six new LatAm markets entered since 2016 and a meaningful increase in strategic OEMs represented in the region to six, in addition to emerging OEMs
- Acquisition represents Inchcape’s first Distribution contracts with Daimler brands, after more than 30 years of Mercedes-Benz partnership in Retail-only markets
- Consistent with focus on core Distribution capabilities and on the disciplined re-allocation of capital; follows the recent disposals of less strategic Retail-only assets which will generate c.£250m on completion
- A milestone for two pillars of the Ignite strategy – OEM partner of choice and investing to accelerate growth
Today’s announcement is consistent with the Group’s strategy of focusing on and growing its core Distribution business. It marks our 11th Distribution business win since 2016 and follows acquisitions over this period which have significantly enhanced Inchcape’s presence in Central and South America. Since 2016, Inchcape has increased its portfolio from BMW in two markets to representing in addition Mercedes-Benz, Hino, Subaru, Suzuki and JLR, as well as Freightliner, Fuso and a range of Chinese OEMs, in eight markets overall today.
Through the Autolider acquisition Inchcape will enter Ecuador and Uruguay, which are adjacent to existing Inchcape markets. In both markets Mercedes-Benz is the premium passenger car market leader and the Daimler commercial vehicle brands together achieve a strong market positioning.
This also marks a meaningful development in Inchcape’s long partnership with Daimler, whose Mercedes-Benz brand has been a Retail-only partner of Inchcape for over 30 years. Inchcape’s OEM partner of choice strategy has been instrumental in establishing the Group as a Distribution partner for Daimler and its affiliated brands.
The enterprise value of £47m represents a multiple of c.8.5x on 2018 EBIT. Completion is expected in Q4 and will therefore contribute minimal profit to FY19.
Stefan Bomhard, Group CEO of Inchcape plc, commented:
“transaction represents a significant milestone in the development of our core higher margin, capital light Distribution business utilising some of the proceeds realised through recent Retail-only disposals in Australia, China and the UK. We are strengthening our presence in a region with attractive growth prospects and further value creation opportunities, adding Daimler brands to a strong and balanced existing brand partner set of BMW, Subaru, Hino, Suzuki and JLR. I am particularly pleased that our OEM Partner of Choice focus has again demonstrated Inchcape’s value as a distributor, this time to Daimler, a key OEM partner.”
Group Communications, Inchcape plc +44 (0) 20 7546 0022
Investor Relations, Inchcape plc +44 (0) 20 7546 8225
Financial PR, Instinctif (Mark Garraway) +44 (0)7771 860 938
Inchcape is the leading independent multi-brand Automotive Distributor and Retailer, operating in 31 markets with a portfolio of the world’s leading car brands. 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 18,700 people.
Inchcape has a multi-layered growth story, with our highly cash generative and attractive Distribution business at its core. Together with the company’s Ignite strategy which focuses on business optimisation initiatives, new contract opportunities, as well as capitalisation of future industry trends, Inchcape can deliver growth for shareholders through organic progress, consolidation and cash returns.
Certain information included herein, such as financial estimates, projections and forecasts, contains forwardlooking statements which involve risk and uncertainty, such as business, economic and regulatory changes, which could cause actual results to differ materially from such estimates, projections and forecasts. No representation or warranty is given as to the achievement or reasonableness of any forward-looking statements discussed in this document. This document is delivered as at the date specified.