RNS Number : 8427U
31 March 2023
31 March 2023
Inchcape continues to expand its distribution footprint in
adds Mercedes-Benz to its existing presence in Indonesia
Inchcape plc, ("Inchcape" or "the Group"), the leading global
automotive distributor, announces an agreement to acquire
Mercedes-Benz's Indonesian business with Inchcape's local partner,
Indomobil. The business has been operated by Mercedes-Benz since
1970, and includes both distribution and assembly operations.
The deal will expand Inchcape's existing distribution footprint
in Indonesia, continuing to build on its well-established and
growing presence in the APAC region. It will also strengthen
Inchcape's relationship with Mercedes-Benz, following a number of
distribution contract wins in the Americas region in recent years,
as well as in the Philippines (announced earlier this year).
Ruslan Kinebas, CEO Inchcape APAC, commented :
" We are very pleased to be expanding our presence in Indonesia
with the acquisition of Mercedes Benz's Indonesian operations in a
joint venture with Indomobil, with whom we already have a strong in
country distribution partnership. We look forward to combining our
local expertise with our leading digital and data capabilities to
grow the business further.
This acquisition is another good example of Inchcape's role as
the partner of choice for OEMs as they work to optimise their
global operations . The deal continues Inchcape's strong momentum
in the APAC region, which is underpinned by an attractive pipeline
of opportunities both in markets which are new to Inchcape and
where we have established operations ."
Further details of the transaction :
-- Inchcape will acquire 70% of the equity of existing
Mercedes-Benz subsidiaries based in Indonesia with Indomobil
acquiring the remaining 30%.
-- The business is expected to add c.GBP200m of annualised
revenue and be accretive to the Group's operating margin.
-- The transaction remains subject to customary conditions
with completion anticipated in late 2023.
-- All transactions(1) announced to date are expected to
complete by year end. The Group anticipates its pro-forma
leverage position at the end of 2023 to be unchanged
from the end of 2022 position (0.6x Net debt/ EBITDA).
(1: Liabilities owing to Derco's previous owners, CATS,
About Inchcape plc
Inchcape is the leading global automotive distributor, with
operations across six continents. Through the unique expertise of
our people, our suite of cutting-edge technology products, and our
approach to advanced data analytics, we provide the platform for
the world's leading mobility companies to accelerate their
ambitions in markets where we and our partners want to succeed.
Our distribution platform connects the products of mobility
companies with customers, and our responsibilities span from
product planning and pricing, import and logistics, brand and
marketing to operating digital sales, managing physical sales and
aftermarket service channels.
Inchcape is driven by its purpose of 'bringing mobility to the
world's communities, for today, for tomorrow and for the better'.
We are committed to making a positive contribution to the
communities in which we operate, for our people, for society and
for the planet. The Group is headquartered in London and employs
around 19,000 people globally.
About Inchcape APAC
Inchcape's modern presence in Asia-Pacific started in 1967 with
the acquisition of Borneo Motors, a company founded in 1925 to
distribute vehicles in Singapore. Inchcape APAC has since expanded
significantly across the region and today distributes new vehicles
and parts in Australia, Brunei, Guam, Hong Kong, Indonesia, Macau,
New Zealand, Saipan, Singapore and Thailand for a large portfolio
of OEM brands: Toyota Motor Corporation, Subaru, Suzuki, Jaguar
Land Rover, BMW Group, Chevrolet, Great Wall Motors, Peugeot
Citroen, Harley-Davidson, Daimler Trucks and Buses, Hino and other
commercial vehicle partners. In 2021, Inchcape plc opened a Digital
Delivery Centre in the Philippines, providing digital and data
analytics support and insights for the Group. Inchcape APAC is
headquartered in Singapore and employs around 3,400 people across
PT Indomobil Sukses Internasional Tbk (Indomobil) is the holding
company of an integrated automotive business group, with a number
of subsidiaries at the forefront of the Indonesian automotive
industry. Indomobil has the largest automotive distribution network
in Indonesia, with more than 300 dealerships. Aside from automotive
distribution, Indomobil also has more than 8,000 points of network
on after-sales services, parts distribution, vehicle financing
services, and other supporting services in the market.
As a fully integrated automotive company, a passenger vehicle
trademark license holder, sales distributor and after-sales service
provider, Indomobil is also a specialist vehicle assembler and
parts/components manufacturer. Operations span passenger vehicles,
motorcycles, commercial vehicles, heavy duty equipment and
machinery. They also provide after-sales and other services to
support the automotive industry such as logistics, vehicle
financing, car rental services, fuel distribution, amongst
Indomobil aims to become not only the largest automotive
conglomerate in Indonesia, but also to provide the best product and
services for customers and create a positive impact to all
stakeholders. Indomobil currently employs more than 13,500
employees across Indonesia, and is part of Salim Group.
Inchcape plc - Investor Relations
Raghav Gupta-Chaudhary +44 (0)7933 395 158
Brunswick Group - Media Enquiries
Kate Holgate, Helen Smith +44 20 7404 5659
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March 31, 2023 02:00 ET (06:00 GMT)
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