Inchcape (LON:INCH) announced the acquisition of Central American automotive retailer Grupo Rudelman on Monday, sending shares up 1.2 percent.
The group confirmed it had offered $284 million for the retailer on a cash-free and debt-free basis. The acquisition is expected to boost Inchcape’s earnings in first full year post-acquisition by mid-single digit percentage, as well as increase their presence in Central America. Grupo Rudelman is the distributor and exclusive retailer for Suzuki in both Costa Rica and Panama.
Stefan Bomhard, Group CEO of Inchcape plc, applauded the acquisition for highlighting the group’s “commitment to investing for growth and allocating capital in a disciplined manner.”
“We are acquiring a strong, well-managed business and I am very pleased to welcome the Grupo Rudelman team to Inchcape. I am delighted to significantly enhance our relationship with Suzuki, a brand that is well positioned for growth and success in emerging markets, with whom we are proud to have partnered for over 40 years.
“With this acquisition we continue to actively position Inchcape towards higher growth markets and higher return Distribution businesses. Distribution trading profit, on a pro forma basis, now equates to 81 percent of total Group profit in 2017. In addition, Inchcape’s portfolio and presence in Latin America has been significantly strengthened, and I am excited about the future opportunities this presents.”
Shares in Inchcape are currently up 1.27 percent at 680.00 (0853GMT).
