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Inchcape acquires Porsche, Land Rover and Volvo distribution business

  • Global retail and distribution business Inchcape has acquired Chilean distributor
  • Deal will add £130m of revenue to the group
  • Firm takes 70 per cent stake with deal likely to complete in second quarter of the year

Time 8:47 am, March 28, 2022

Inchcape has acquired a 70 per cent stake in a distribution business to expand its global business further.

The listed car dealer and distribution business – which made a £296m pre tax profit in 2021 – has snapped up the Porsche, Volvo and Jaguar Land Rover distributor in Chile.

Ditec will add circa £130m of annualised revenue to Inchcape’s Americas & Africas division which is currently the group’s fastest growing.

Duncan Tait, Group CEO, said: ‘We are pleased to announce another distribution acquisition in the Americas, expanding our growing footprint in the region and adding Porsche and Volvo, two leading premium brands to our list of OEM partners. 

‘This acquisition is a good example of our Accelerate strategy in action; leveraging our global distribution leadership to expand our footprint with both existing and new OEM partners – and using our distribution business as a platform to capture more of a vehicle’s lifecycle value.

‘The automotive distribution sector is highly fragmented and set for substantial consolidation.

‘This is in part driven by digitalisation, but also the value of leveraging data and consumer insights across markets and regions, and OEMs’ desire for fewer, stronger partners. 

‘The combination of our leading global position, our digital and data capabilities and our strong financial position makes Inchcape a natural consolidator. 

‘This acquisition underpins our strategy to further accelerate growth through consolidation.’

The deal expands Inchcape’s brand footprint, adding first-time distribution relationships with Porsche and Volvo, and further broadens its coverage with Jaguar Land Rover to 12 markets from eight in 2019.

Inchcape has acquired 70 per cent in Ditec, with the remainder being retained by Sebastián de Cárcer, the group’s president. 

He said: ‘Following 60 successful years of operation, the time has come for Ditec to enter the next phase of its growth journey. I believe that with Inchcape we have found the best possible partner to take us forward.

‘Inchcape’s leadership in digital and data will help propel the business into the new age of automotive distribution, and drive the best outcomes for consumers, colleagues and OEM partners. 

‘I am looking forward to seeing the business grow in the months and years ahead.’

Two weeks ago Inchcape said it was pulling out of Russia following the invasion of Ukraine.

In a statement to the London Stock Exchange, the firm said it was ‘deeply saddened by the ongoing conflict in Ukraine and the enormous humanitarian impact on all those affected’. 

It added: ‘In light of the current circumstances, we have concluded that the group’s ownership of its business interests in Russia is no longer tenable.

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‘Therefore, working in conjunction with our OEM partners, we have initiated a process to transition our Russian business.’

Last year, it sold its Toyota and Audi dealerships in St Petersburg for £70m as it looked to focus on distribution.

The Chilean transaction remains subject to customary conditions, with completion anticipated in Q2 2022.

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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