Acquisition

11th Jun 2007 07:01

Inchcape PLC11 June 2007 FOR IMMEDIATE RELEASE11 June 2007 INCHCAPE PLC FURTHER EMERGING MARKET EXPANSION Acquisition of Baltic Motors and BM Auto in Latvia gives Inchcape a leading share of market. Inchcape plc ('Inchcape' or the 'Group'), the leading independent, internationalautomotive distributor and retailer, is pleased to announce that it has signedan agreement to acquire Baltic Motors Corporation and SIA BM Auto ('BalticMotors') from MVC Capital, Inc. for a total cash consideration of up to £60.5m(including goodwill, property and related assets). Baltic Motors representsFord, BMW and Land Rover in Latvia, the Baltics' largest and fastest growingmarket. The acquisition is in line with the Group's strategy to expand into theEmerging Markets and builds on other recent investments in the Baltic States. Baltic Motors' main business is based in the Latvian capital, Riga, withadditional dealerships in the regional cities of Liepaja and Ventspils. It iscurrently Inchcape's third party Land Rover retailer in Latvia, also retails BMWand is the exclusive distributor and retailer of Ford in Latvia. Followingcompletion of the transaction, Inchcape will have a market leadership positionin Latvia with distribution and retail of Ford, Land Rover, Jaguar and Mazda andretail of BMW . The total automotive market in Latvia is estimated to have grown by 51% in 2006to over 28,000 units. The acquisition of Baltic Motors, together withInchcape's existing Mazda and Jaguar retail business, will make Inchcape marketleader with a market share of over 10%. It also provides a good fit with theFord business recently acquired in Lithuania. Andre Lacroix, Group Chief Executive of Inchcape, commented: "We are very pleased with this further implementation of our strategy to expandin the emerging markets. This acquisition strengthens our relationships withour core brand partners and gives us a market leading position in the exciting,fast growing market of Latvia." 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 the UK.The Group also has operations in a number of other markets, including EasternEurope, the Baltics, Russia and South America. In addition to growing its corebusinesses, Inchcape is looking to develop scale operations in new and emergingregions. It represents leading automotive brands and operates either a retail,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 Exchange

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