Inchcape acquires luxury Australian automotive group

Inchcape has agreed to acquire Trivett Automotive Group, a luxury vehicle company in Australia.

Inchcape has agreed to acquire Trivett Automotive Group, a luxury vehicle company in Australia.

The international automotive distributor and retailer will take over the company on March 1st for a total estimated cash consideration of £78m.

The deal is expected to strengthen Inchcape's position in the Australian market where the company has been operating since 1992.

Trivett sells 9,000 vehicles per year including premium brands - BMW, Jaguar, Land Rover, Volvo, Honda, Rolls-Royce, Bentley, Aston Martin and McLaren.

Revenue for the 2012 calendar year came to £390m and earnings before interest and tax reached £12m.

Trivett has 10 freehold properties in Sydney with a market value of £31m.

Inchcape said the strong Australian economy has driven growth in the automotive demand, particularly in metropolitan areas and mining territories.

Last year the new vehicle market grew a record 10% year-on-year to 1.1m units.

Andr Lacroix, Group Chief Executive of Inchcape, said: "This is a significant step in the development of our operations in Australasia, giving us the opportunity to build further scale with premium and luxury brands represented in high quality retail centres in Sydney.

"The transaction is in line with our strategy of expansion in Asia Pacific and Emerging Markets with luxury and premium brand partners. Trivett is a high quality operation and an excellent fit for Inchcape."

Inchcape shares rose 0.50% to 507.00p at 08:08 Wednesday.

RD

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Beating inflation takes more luck than skill – but are we about to get lucky?
Inflation

Beating inflation takes more luck than skill – but are we about to get lucky?

The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank…
26 Sep 2022
The pick of this year's best-performing investment trusts
Investment trusts

The pick of this year's best-performing investment trusts

Market conditions haven’t been easy, but these investment trusts have delivered strong growth, says David Stevenson.
23 Sep 2022
The hidden cost of employee share schemes
Investment strategy

The hidden cost of employee share schemes

Paying employees in shares comes at a cost to investors – but it isn’t always easy to see how much, says Stephen Clapham.
26 Sep 2022