Inchcape who employs 3,600 people across 80 sites have announced that they are to sell their UK car dealership for £346 million to US based rival, Group 1 Automotive.
The London listed Inchcape announced in January they are looking for a possible sale after they had a number of approaches from “interested parties.”
On Monday, Inchcape boss Duncan Tait said the firm’s international expansion means the “strategic importance of the UK retail operations has become limited.”
He added: “The board has therefore concluded it is the right time for a new owner to take this business forward.”
The sale is expected to complete by the third quarter of the year and shareholders could walk away with around £100 million through a share buyback.
Tait added, “This transaction aligns with our strategic priorities, simplifies our business and represents a compelling opportunity to deliver meaningful returns to our shareholders.
“We believe it will enhance the group’s overall value proposition and enables us to drive growth and long-term value creation for all stakeholders as we further develop our differentiated distribution platform.”
Daryl Kenningham, president and chief executive officer of Group 1 Automotive, said, “We are delighted to have reached an agreement to acquire Inchcape’s UK retail operations, which we have long admired given the company’s reputation for exceptional customer service, attractive portfolio of OEM (original equipment manufacturer) brand partners and high-quality management team.
“With our considerable automotive retail experience in the United States and the UK, we look forward to building on Inchcape’s strong industry relationships and leveraging our expertise to support our combined operations in their next phase of growth.”
