Group 1 Automotive has accomplished its £346 million takeover of Inchcape Retail, adding 54 automotive and van dealerships in a “monumental transaction” that can put it into the highest five of the AM100 rankings of UK’s largest motor retailers.
Doing so expands Group 1 Automotive UK’s trading area into the Midlands and the North West of England, and into Wales, plus adds more sites in its existing geographic footprint within the East and South East of England.
It also broadens its brand portfolio with Audi, BMW, Jaguar Land Rover, Lexus, Mercedes-Benz, Mini, Porsche, Smart, Toyota, Volkswagen and Volkswagen Business Vehicles.
Group 1 said the previous Inchcape businesses are expected to bring $2.7bn (£2.1 bn) of additional annual revenues. Meaning the enlarged UK business will climb the AM100 rankings to compete with Vertu Motors, which was ranked 4th within the 2023 AM100.
Martin Wastie, chief financial officer at Inchcape Retail, thanked his colleagues for nine months of exertions to get this “monumental transaction” over the road, and added that Group 1 UK and Inchcape Retail together “turn into some of the preeminent forces within the automotive sector within the UK”, with excellent portfolios and scaleability.
It’s Group 1’s biggest acquisition within the UK since it took over nine-dealership group Robinsons in East Anglia during 2021.
“This transformative acquisition effectively doubles our UK footprint, giving us access to recent markets throughout England with a set of outstanding brands,” said Group 1’s president and chief executive Daryl Kenningham. “We’re delighted to welcome our recent team members as we collaborate to deliver a wonderful customer experience.”
Group 1’s senior vice chairman and chief financial officer Daniel McHenry added: “Inchcape Retail and its team bring a 50-year fame to Group 1’s UK presence. This strategic acquisition is aligned with our capital allocation strategy, which enables us to discover opportunities that create additional scale and value for our shareholders.”
In 2013 Group 1 acquired Inchcape’s Ford dealership division.
This Article First Appeared At www.am-online.com
