Inchcape PLC (LSE:INCH) has acquired a 70% stake in Ditec, the distributor of Porsche, Volvo and Jaguar Land Rover in Chile, for an undisclosed amount.
The multi-brand automotive distributor and retailer said the deal broadens its brand footprint by adding new distribution agreements with Porsche and Volvo, as well as expanding coverage of Jaguar Land Rover to 12 markets from eight in 2019.
Ditec will add around £130mln of annualised revenue to Inchcape's fastest-growing region in the Americas & Africa, with pro-forma revenues of £1.3bn.
A 30% interest in Ditec will remain with company president Sebastian de Carcer.
"We are pleased to announce another distribution acquisition in the Americas, expanding our growing footprint in the region and adding Porsche and Volvo, two leading premium brands to our list of OEM partners," said Duncan Tait, Inchcape's group chief executive.
"This acquisition is a good example of our accelerate strategy in action; leveraging our global distribution leadership to expand our footprint with both existing and new OEM partners, and using our distribution business as a platform to capture more of a vehicle's lifecycle value."
Automobile distribution is highly fragmented and is about to consolidate, said Tait, adding it is partly due to digitalistion, but also because OEMs want fewer, stronger partners, and are leveraging data and consumer insights.
Inchcape's stock advanced 1.23% to 700p.