8:00 am, January 17, 2023
Inchcape is set to expand its footprint in the Asia-Pacific (APAC) region after signing an agreement with Philippines-based CAT Motors.
Announced via the London Stock Exchange this morning (Jan 17), Inchcape will enter into a joint venture with CATS and take a majority stake in the company.
The deal sees Inchcape strengthen its relationships with Mercedes-Benz, Chrysler, Dodge, Jeep, and Jaguar and Land Rover in APAC, and work with RAM for the first time.
Inchcape said it will take a 60 per cent stake in the company, with the remaining being owned by the founding family.
CATS is expected to add around £120m of annualised revenue and boost Inchcape’s operating margin.
Ruslan Kinebas, CEO Inchcape APAC, said: ‘We are very pleased to be entering the Philippines, a country with a large and fast-growing economy, where CATS is the leading distributor of luxury vehicles.
‘The Ang family has built long-standing successful relationships with its OEM brand partners and its customers. We are looking forward to building on their achievements and accelerating the company’s digitalisation journey, driving the business to further success.
‘This acquisition is a significant milestone for Inchcape in APAC and an excellent example of our Accelerate strategy in action; extending our global distribution leadership by expanding our OEM brand footprint in markets where vehicle penetration is low but expected to grow quickly.
‘The combination of Inchcape’s leading global position and digital and data capabilities means we are well placed to successfully execute our strategy to accelerate growth both organically and via industry consolidation.’
CATS Motors Inc. was founded in 1989 by Felix R. Ang with the company name standing for ‘Car Accessories Tires and Service Center’.
Inchcape confirmed Ang will continue to be represented on the CATS board.
This latest venture comes soon after Inchcape confirmed it bought Derco, Latin America’s biggest independent automotive distributor, for £1.3bn earlier this month.
Image: CATS Motors’ Mercedes-Benz Greenhills dealership
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