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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
-
State pension errors: DWP urged to check for mistakes among divorced peopleFormer pensions minister Steve Webb says there are a high number of divorced women on low state pensions. Now MPs want the DWP to check if there were any errors in “potentially underpaying men and women who are divorced”.
