LONDON: Inchcape plc has agreed to acquire Autolider, a distributor of Daimler brands, for £47 million. The enterprise value of £47 million represents a multiple of c.8.5x on 2018 EBIT. Completion is expected in Q4 and will therefore contribute minimal profit to FY19.
Inchcape is the leading independent multi-brand Automotive distributor with global scale, and Autolider is the distributor of Mercedes-Benz passenger and commercial vehicles in both Uruguay and Ecuador. Autolider is also the distributor of Daimler’s Freightliner and Fuso brands in Uruguay.
The acquisition represents Inchcape’s first distribution contracts with Daimler brands, after more than 30 years of Mercedes-Benz partnership in Retail-only markets.
Acquisition is consistent with the Group’s strategy of focusing on and growing its core distribution business. It marks 11th distribution business win since 2016 and follows acquisitions over this period which have significantly enhanced Inchcape’s presence in Central and South America.
Since 2016, Inchcape has increased its portfolio from BMW in two markets to representing in addition Mercedes-Benz, Hino, Subaru, Suzuki and JLR, as well as Freightliner, Fuso and a range of Chinese OEMs, in eight markets overall today.
Through the Autolider acquisition Inchcape will enter Ecuador and Uruguay, which are adjacent to existing Inchcape markets. In both markets Mercedes-Benz is the premium passenger car market leader and the Daimler commercial vehicle brands together achieve a strong market positioning.
This also marks a meaningful development in Inchcape’s long partnership with Daimler, whose Mercedes-Benz brand has been a Retail-only partner of Inchcape for over 30 years. Inchcape’s OEM partner of choice strategy has been instrumental in establishing the Group as a Distribution partner for Daimler and its affiliated brands.
Stefan Bomhard, Group CEO of Inchcape plc, commented: “This transaction represents a significant milestone in the development of our core higher margin, capital light Distribution business utilising some of the proceeds realised through recent Retail-only disposals in Australia, China and the UK. We are strengthening our presence in a region with attractive growth prospects and further value creation opportunities, adding Daimler brands to a strong and balanced existing brand partner set of BMW, Subaru, Hino, Suzuki and JLR. I am particularly pleased that our OEM Partner of Choice focus has again demonstrated Inchcape’s value as a distributor, this time to Daimler, a key OEM partner.”