9:09 am, January 3, 2023
Inchcape has completed its £1.3bn buyout of Latin America’s biggest independent automotive distributor Derco.
A statement issued via the London Stock Exchange this morning confirmed the news in the run-up to Christmas that the buyout was poised to be completed by the end of 2022.
The deal was originally announced on July 28 and, said Inchcape, extends its global automotive distribution footprint by combining Inchcape Americas with Derco, which has sites in Chile, Peru, Colombia and Bolivia.
It sees Juan Pablo Del Río joining the Inchcape board as a non-executive director, having been nominated by the family owners.
Inchcape group chief executive Duncan Tait said today: ‘When we launched our Accelerate strategy in November 2021 we set an ambition to extend our global leadership in automotive distribution, and to become the undisputed number one choice for OEMs.
‘The completion of the transformational acquisition of Derco is an important step in our ambitious growth journey.
‘The combination brings together two best-in-class operators in highly attractive and fast-growth markets within Latin America, and significantly expands our OEM brand portfolio.
‘The enlarged business will provide exciting opportunities for our colleagues, OEM partners, dealers and consumers.
‘We will also leverage Inchcape’s leading digital and data capabilities, to grow the distribution business and capture a greater share of the vehicle lifecycle value.’
Nigel Stein, pictured, the chairman of Inchcape, said: ‘We are delighted to welcome Juan Pablo to the board.
‘His tremendous experience of both automotive distribution and of business generally in Latin America, will be a valuable addition to the Inchcape board..
Del Río said: ‘Inchcape and Derco are highly complementary businesses, enjoying a strong strategic and cultural fit.
‘The combined strengths of both companies, including Inchcape’s undisputed leadership in digital and data, will provide exciting opportunities for colleagues across the enlarged business.
‘I am looking forward to working with Nigel and the board, to support Duncan and the executive team to drive the next phase of Inchcape’s exciting growth strategy.’
A total of 38,513,102 ordinary Inchcape shares of 10p each were allotted and issued to the family owners as part of the deal, giving them a 9.3 per cent shareholding in Inchcape.
Inchcape added that its financial performance for 2022 is expected to be in line with the outlook issued on October 27, with adjusted pre-tax profit towards the top end, or slightly above, the previously guided range of £350m to £370m, giving a boost of some £15m to the group pre-tax profit.
Derco will be consolidated within Inchcape’s financial statements as of December 31, 2022 and Inchcape said it expects to report its full year 2022 results towards the end of March.
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