Transaction highlights:
· Sale of retail operations in St. Petersburg for an enterprise value of c.£70m
· Consistent with the Group’s strategy to focus on its global distribution ambitions
Inchcape plc (LON:INCH), the leading independent multi-brand automotive distributor with global scale, today announced that it has agreed the sale of its Toyota and Audi retail operations in St. Petersburg to KlyuchAvto, a local market operator. The Group has agreed to dispose of the business for an enterprise value of c.£70m, which will be paid in cash on completion. The transaction is conditional upon final OEM partner and regulatory approvals, and is expected to complete in the second-quarter.
In 2020, the disposed operations generated revenue of c£200m and profit before tax (pre-exceptionals) of £12m. Gross assets at the end of 2020 were £77m. Owing to accumulated foreign exchange translation losses (£110m*), the disposal will crystallise an exceptional loss before tax of £65m*.
The proceeds from the disposal will be deployed consistent with the Group’s strategy to grow the core Distribution business.
The Group will provide an update on its first-quarter trading on Thursday 29th April.
* based on prevailing exchange rates, and therefore subject to change
Inchcape is the leading independent multi-brand global automotive distributor, operating in 34 markets with a portfolio of the world’s leading automotive brands. Inchcape has diversified multi-channel revenue streams including sale of new and used vehicles, parts, service, finance and insurance. The Company has been listed on the London Stock Exchange (INCH) since 1958, is headquartered in London and employs around 15,000 people.
