21st May 2007 07:00
Inchcape PLC21 May 2007 21 May 2007 INCHCAPE PLC FURTHER EMERGING MARKET EXPANSION Acquisition of 67% shareholding in Mazda, Ford, Mitsubishi and Hyundai business in Lithuania gives Inchcape close to 20% market share Inchcape plc ('Inchcape' or the 'Group'), the leading independent, internationalautomotive distributor and retailer, is pleased to announce that it has signedan agreement to acquire a 67% stake in the automotive retail businesses of UABVitvela (the "Company"), from UAB Vitvela for a total cash consideration of upto £13.0m (including goodwill and related assets). The agreement is in line withthe Group's strategy to expand into the Emerging Markets and, in particular,into the Baltic States. The Company is Inchcape's third party Mazda retailer in Lithuania. Its mainbusiness is based in the capital, Vilnius, with additional dealerships in theregional cities of Kaunas and Klaipeda. The Company also represents Ford,Hyundai and Mitsubishi. Following completion of the transaction, Inchcape willhave an integrated distribution and retail business for Mazda, Ford andMitsubishi in Lithuania and also have a leading share of Hyundai retail in thecountry. The total automotive market in Lithuania grew 37% in 2006 to over18,000 units. The brands had a combined market share of 18.5% in 2006. Andre Lacroix, Group Chief Executive of Inchcape, commented: "In line with our strategy, this acquisition continues our expansion into theEmerging Markets. The Lithuanian market is rapidly increasing in size and thisis an appropriate time for us to enter this new market to achieve scaleadvantages with a respected partner. This acquisition gives us close to 20%market share of the total car market in Lithuania" Linas Peciukevicius, new Country Manager for Inchcape Lithuania, commented: "We are excited by this excellent opportunity to build a partnership with astrong international group. The joint venture will further strengthen ourposition in the Lithuanian market and help us to grow across the countryalongside the world's leading automotive retailer." For further information, please contact: Group Communications, Inchcape plc+44 (0) 20 7546 0022 Investor Relations, Inchcape plc+44 (0) 20 7546 8432 Financial Dynamics (Jonathon Brill/Billy Clegg)+44 (0) 20 7831 3113 Notes to editors Inchcape plc Inchcape plc is the leading independent, international automotive retailer, withscale operations in Australia, Belgium, Greece, Hong Kong, Singapore and theUK. The Group also has operations in a number of other markets, includingEastern Europe, the Baltics, Russia and South America. In addition to growingits core businesses, Inchcape is looking to develop scale operations in new andemerging regions. It represents leading automotive brands and operates either aretail, or a vertically integrated retail model (i.e. exclusive distribution andretail), depending on the market. Inchcape's current key manufacturer partnersare Toyota/Lexus, Subaru, BMW, Mazda, Mercedes-Benz, PAG, Volkswagen, Audi andHonda. For further information, visit us at www.inchcape.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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