FTSE 250 car dealership Inchcape has agreed to buy Interamericana Trading Corporation (ITC) and Simpson Motors from the Simpson Group for an undisclosed sum, expanding its footprint with entry into the Caribbean.
ITC is an independent distributor in the Caribbean region, with distribution to over 30 territories – including Jamaica, Guadeloupe, Trinidad and Tobago and Martinique.
Simpson Motors is the leading automotive retailer in Barbados. It operates a vertically integrated business from one large site on the island, distributing passenger vehicles for Suzuki, Mercedes-Benz, Chrysler and Subaru, as well as commercial vehicles for Isuzu, Fuso, JBC, Bobcat and John Deere.
Inchcape said the deal will strengthen its geographic reach with Suzuki, Mercedes-Benz and Subaru, and broaden its OEM relationships, with the addition of Chrysler to its list of brand partners.
The businesses are expected to add around £120m of annualised revenue and will be accretive to group margins. Completion of the acquisition is expected in the first half of next year.
Chief executive officer Duncan Tait said: “This acquisition is a good example of our Accelerate strategy in action; leveraging our global distribution leadership to expand into new markets with both existing and new OEM partners.
“As we detailed at our Capital Markets Day, automotive distribution is highly fragmented, and there is a huge landscape of opportunity for Inchcape to drive consolidation. The combination of our leading global position, our digital and data capabilities, and our strong financial position, means we are well-placed to accelerate our growth ambition.”
