Inchcape to sell UK retail operations to Group 1 for £346m

London, 15 April 2024 – Inchcape plc (“Inchcape” or “the Group”) has today agreed the sale of its UK retail operations (“Inchcape UK”) for £346m to Group 1. The deal marks a major milestone in Inchcape’s consolidation into a distribution-focused business.

“This sale represents a good outcome for all stakeholders and is an important step in realising our ambition of being the leading distributor for our partners and customers worldwide” said Duncan Tait, Group Chief Executive of Inchcape.

The sale of the Group’s UK retail operations follows a strategic review announced on 29 January 2024. Accelerating Inchcape’s transformation into a substantially distribution-focused business will generate higher returns, make the company more capital-light, relatively higher margin and highly cash generative. Retail still has a place in Inchcape as part of its distribution value chain, where it adds commercial value, to drive deeper market understanding and customer insights in certain markets. But the Group remains focused on harnessing the capabilities of a differentiated Distribution platform for OEM partners – combining unrivalled technology, powerful local expertise, and exceptional people.

“Group 1’s acquisition of Inchcape’s UK retail operations demonstrates our business’s impressive scale, strategic footprint, and strong relationships with OEM (Original Equipment Manufacturer) brands. This success is due to our people, our teams, and the excellent work they have put in to building a business known for its outstanding customer service,” said George Ashford, Chief Executive of Inchcape UK.

“Group 1 clearly shares our vision for excellence and growth and has demonstrated its commitment to the long-term success of our business and will be a great home for our colleagues.”

The transaction is expected to close in Q3 of this year, subject to the satisfaction of regulatory approvals.

Daryl Kenningham, President and Chief Executive Officer of Group 1 Automotive, said: ‘We are delighted to have reached an agreement to acquire Inchcape’s UK Retail operations,

which we have long admired given the company’s reputation for exceptional customer service, attractive portfolio of OEM brand partners and high-quality management team. With our considerable automotive retail experience in the United States and the UK, we look forward to building on Inchcape’s strong industry relationships and leveraging our expertise to support our combined operations in their next phase of growth.’

A copy of the RNS is available here.