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Inchcape to acquire Autolider
Posted on Thursday, 07 November 2019 13:09
Inchcape has agreed to acquire Daimler brands distributor Autolider for GBP 47.00 million, representing a multiple of 8.5x 2018 earnings before interest and taxes.
The leading independent multi-brand car distributor is looking to expand its operations in Latin America where the target sells Mercedes-Benz passenger and commercial vehicles in Uruguay and Ecuador.
Inchcape said this acquisition is its first distribution contract with Daimler brands.
Since 2016, the acquiror has increased its portfolio from BMW in two markets to representing Mercedes-Benz, Subaru, Suzuki, as well as Freightliner and Fusco in a range of Chinese markets.
Chief executive of Inchcape, Stefan Bomhard, said: “[The] transaction represents a significant milestone in the development of our core higher margin, capital light distribution business utilising some of the proceeds realised through recent Retail-only disposals in Australia, China and the UK.”
The deal is slated to complete in the fourth quarter of 2019 and is expected to have a minimal profit to fiscal 2019.
Inchcape operates in 31 countries with a portfolio of world’s leading car brands, while having diversified revenue streams including sale of new and used vehicles, parts, services, finance and insurance.
Shares in the business closed up 2.6 per cent to GBP 6.43 yesterday, giving the group a market capitalisation of GBP 2.58 billion.
During the six months to 30th June 2019, Inchcape recorded revenue of GBP 4.73 billion, a 2.4 per cent increase on GBP 4.61 billion in the corresponding period 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 286 deals targeting motor vehicle and parts dealers announced worldwide in 2019 to date.
TDR Capital, via BBD Bidco, agreed to acquire second-hand automobile auction market operator BCA Marketplace for GBP 1.85 billion, in the largest of these.
Other targets included China Grand Automotive Services Group, Australia-headquartered Automotive Holdings Group, ZJAMP Group of China and UK-based Pendragon.
© Zephus Ltd