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After finalizing a £346 million deal, Group 1 Automotive has successfully taken over Inchcape Retail, incorporating 54 car and van dealerships in a significant move that propels it into the top ranks of UK’s largest motor retailers according to the AM100 rankings.
This move has expanded the trading territory of Group 1 Automotive UK towards the Midlands, the North West of England, and Wales, while also enhancing its presence in the East and South East regions of England.
Furthermore, this acquisition has diversified the brand portfolio of Group 1, now including Audi, BMW, Jaguar Land Rover, Lexus, Mercedes-Benz, Mini, Porsche, Smart, Toyota, Volkswagen, and Volkswagen Commercial Vehicles.
Anticipated revenues from the former Inchcape businesses are estimated to reach $2.7bn (£2.1 bn) annually, propelling the enlarged UK operations to a competitive position against Vertu Motors, previously holding the 4th spot in the 2023 AM100 rankings.
Martin Wastie, the chief financial officer at Inchcape Retail, expressed gratitude to his colleagues for their dedicated effort spanning nine months to push this transformative deal through. He highlighted the synergy between Group 1 UK and Inchcape Retail, forming a dominant force in the UK automotive sector with exceptional portfolios and scalability.
This acquisition marks Group 1’s most significant venture in the UK since its acquisition of the nine-dealership group, Robinsons, in East Anglia back in 2021.
“By acquiring these dealerships, our UK operations have effectively doubled in size, granting us access to novel markets across England with a stellar lineup of renowned brands,” remarked Daryl Kenningham, the president and CEO of Group 1. “We are excited to integrate our new team members and work collaboratively to ensure an exceptional customer experience.”
Adding to this sentiment, Daniel McHenry, the senior vice president and chief financial officer of Group 1, stated: “Inchcape Retail and its team bring with them a distinguished 50-year reputation to Group 1’s UK operations. This strategic acquisition aligns seamlessly with our capital allocation strategy, offering opportunities to enhance our scale and create additional value for our shareholders.”
Back in 2013, Group 1 made a strategic move by acquiring Inchcape’s Ford dealership division.
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