Inchcape PLC Strategic Distribution Acquisition in Estonia (2056G)
May 25 2017 - 1:02AM
UK Regulatory
TIDMINCH
RNS Number : 2056G
Inchcape PLC
25 May 2017
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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