Inchcape Acquires Suzuki Retailer Grupo Rudelman For USD284 Million

26th Mar 2018 09:15

LONDON (Alliance News) - Inchcape PLC said on Monday it has acquired Suzuki-focused distribution business Grupo Rudelman in Central America for USD284 million on a cash-free and debt-free basis.

Automotive retail and services company Inchape said that the unconditional transaction, which is expected to be completed later Monday, includes acquisitions of Grupo Redelm subsidiaries Holding de las Americas SA and Fundacion Rudco.

The company also said that in will not continue its share repurchase programme announced in February, due to the acquisition expenses.

This purchase represents Inchcape's sixth distribution acquisition in the last two years.

Inchcape said it has a long-term partnership with Suzuki, performing as a distributor in Singapore since 1977 and in Argentina since 2016.

Grupo Rudelman, which operates in Panama and Costa Rica, distibuted around 12,500 new Suzuki cars in 2017.

The company said that small-engine compact Suzuki cars are suited to local market preferences and therefore the company expects further development of the acquired business with new growth opportunities across Latin American region.

Inchcape Chief Executive Officer Stefan Bomhard said: "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% 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."

The stock was up 1.6% at 682.00 pence per share on Monday.

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