LONDON: Inchcape plc, the leading independent multi-brand automotive distributor with global scale, has agreed the sale of its Toyota and Audi retail operations in St. Petersburg to KlyuchAvto, a local market operator.
The Group has agreed to dispose of the Toyota and Audi retail business for an enterprise value of c.£70 million, which will be paid in cash on completion. The transaction is conditional upon final OEM partner and regulatory approvals, and is expected to complete in the second-quarter.
In 2020, the disposed operations generated revenue of c£200 million and profit before tax (pre-exceptionals) of £12 million. Gross assets at the end of 2020 were £77 million.
Owing to accumulated foreign exchange translation losses (£110 million), the disposal will crystallise an exceptional loss before tax of £65 million.
The proceeds from the disposal will be deployed consistent with the Group’s strategy to grow the core Distribution business.
Inchcape is the leading independent multi-brand global automotive distributor, operating in 34 markets with a portfolio of the world’s leading automotive brands. Inchcape has diversified multi-channel revenue streams including sale of new and used vehicles, parts, service, finance and insurance.
The Company has been listed on the London Stock Exchange (INCH) since 1958, is headquartered in London and employs around 15,000 people.