Business
Proposed acquisition of Derco
Proposed acquisition of Derco.
About this update from Inchcape Plc
[{"type":"text","content":"\n \n \n THIS ANNOUNCEMENT AND THE INFORMATION HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n \n \n \n THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION\n \n \n \n \n \n \n 28 July 2022\n \n \n \n \n \n \n \n \n INCHCAPE PLC\n \n \n \n \n \n \n PROPOSED ACQUISITION OF DERCO -\n \n \n \n \n EXTENDING INCHCAPE'S GLOBAL LEADERSHIP IN AUTOMOTIVE DISTRIBUTION\n \n \n \n \n Inchcape announces business combination with Derco, Latin America's largest independent automotive distributor\n \n \n \n \n \n \n \n \n Inchcape PLC (the \"Company\" and together with its subsidiaries \"Inchcape\"), the leading independent multi-brand global automotive distributor, announces the signing of an agreement to implement a business combination to acquire Derco (\"Derco Holdings\" and together with its subsidiaries, \"Derco\"), the largest independent automotive distributor in Latin America, for a cash and share consideration valuing Derco at £1.3 billion1 on a debt and cash free basis (the \"Transaction\").\n \n \n \n \n \n Derco is a family-owned multi-brand automotive distributor, and the largest independent distributor by volume in Latin America, with a strong track record of profitable growth. Derco has significant presence across four attractive markets of Chile, Peru, Colombia and Bolivia, and has long-standing partnerships with global automotive brands such as Suzuki, Mazda, Chevrolet, Changan, JAC, Renault, Great Wall and Haval.\n \n \n \n \n \n Derco is led by an experienced management team with deep knowledge of the markets in which they operate, and on average 15 years of experience. This team will be a strong addition to Inchcape's fast-growing platform in the Americas.\n \n \n \n \n \n \n \n \n STRATEGIC highlights\n \n \n \n ·\n Brings together two leading automotive distributors in Latin America: Inchcape, with broad geographic reach and extensive brand representation, and Derco, the largest independent distributor by volume\n \n \n ·\n Significantly expands Inchcape's position\n in\n highly attractive and fast growth markets within Latin America\n \n \n ·\n Combines two best-in-class operators with complementary market footprints and OEM brand portfolios, providing significa...