Group 1 Automotive has closed on the acquisition of Inchcape Retail automotive operations with 54 dealerships across the UK.
These are expected to generate US$2.7bn in annual revenues bringing 2024 year to date total acquired revenues for Group 1 to $3.8bn.
"This acquisition effectively doubles our UK footprint, giving us access to new markets throughout England with a collection of outstanding brands," said president and CEO Daryl Kenningham.
Group 1 has expanded its UK footprint to key hubs such as the Midlands, the north west of England and Wales, enabling the company to reach new customers, as well as expand its brand offering in the UK The brands include Audi, BMW/Mini, Jaguar Land Rover, Lexus, Mercedes-Benz/Smart, Porsche, Toyota, Volkswagen and Volkswagen Commercial Vehicles.
CFO Daniel McHenry added, "Inchcape Retail and its team bring a 50 year reputation to Group 1's U.K. presence. This strategic acquisition is aligned with our capital allocation strategy, which enables us to identify opportunities that create additional scale and value for our shareholders."
In a separate statement, Inchcape said the completion of the disposal woulld complete its switch to a pure play distribution operator, with a diversified and scaled global business.
"Distribution is higher margin, more capital light, higher return, more cash generative, compared to retail only businesses," the company added.
Group CEO Duncan Tait said: “We are pleased to have completed the divestment of our UK retail business, which represents a major strategic inflection point for Inchcape, as we deliver on our ambition of becoming the leading distribution partner to our OEM partners around the world."
