Inchcape PLC (LON:INCH) is expanding further in Latin America with the acquisition of Grupo Rudelman, a Suzuki-focused automotive distribution business in Central America for a total consideration of US$284mln (£201mln), on a cash-free and debt-free basis.
In a statement, the FTSE 250-listed global car dealer said the cash consideration represents approximately 9.6x the target group’s EBIT of US$29.4mln for the 12 months to 31 December 2017.
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It said Grupo Rudelman, a family-run business, has grown into one of the leading and most successful automotive distributors in Central America having built and maintained strong market positions and scale as the distributor and exclusive retailer for Suzuki in both Costa Rica and Panama.
Stefan Bomhard, Inchcape’s group CEO commented: "The acquisition of a second scale Distribution platform in Latin America in two years highlights our commitment to investing for growth and allocating capital in a disciplined manner.
He added: “With this acquisition we continue to actively position Inchcape towards higher growth markets and higher return Distribution businesses. Distribution trading profit, on a pro forma basis, now equates to 81% of total Group profit in 2017.
“In addition, Inchcape's portfolio and presence in Latin America has been significantly strengthened, and I am excited about the future opportunities this presents."