Inchape, with local partner Indomobil, acquires Mercedes-Benz’s Indonesian business
LONDON, UK: Inchcape plc, the leading global automotive distributor, announced an agreement to acquire Mercedes-Benz’s Indonesian business with Inchcape’s local partner, Indomobil.
The business has been operated by Mercedes-Benz since 1970, and includes both distribution and assembly operations.
The deal will expand Inchcape’s existing distribution footprint in Indonesia, continuing to build on its well-established and growing presence in the APAC region. It will also strengthen Inchcape’s relationship with Mercedes-Benz, following a number of distribution contract wins in the Americas region in recent years, as well as in the Philippines (announced earlier this year).
Ruslan Kinebas, CEO Inchcape APAC, commented: “We are very pleased to be expanding our presence in Indonesia with the acquisition of Mercedes Benz’s Indonesian operations in a joint venture with Indomobil, with whom we already have a strong in country distribution partnership. We look forward to combining our local expertise with our leading digital and data capabilities to grow the business further.
This acquisition is another good example of Inchcape’s role as the partner of choice for OEMs as they work to optimise their global operations. The deal continues Inchcape’s strong momentum in the APAC region, which is underpinned by an attractive pipeline of opportunities both in markets which are new to Inchcape and where we have established operations.”
Further details of the transaction:
Inchcape will acquire 70% of the equity of existing Mercedes-Benz subsidiaries based in Indonesia with Indomobil acquiring the remaining 30%.
The business is expected to add c.£200m of annualised revenue and be accretive to the Group’s operating margin.
The transaction remains subject to customary conditions with completion anticipated in late 2023.
All transactions announced to date are expected to complete by year end. The Group anticipates its pro-forma leverage position at the end of 2023 to be unchanged from the end of 2022 position (0.6x Net debt/ EBITDA).
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