Group 1 Automotive has completed its £346 million takeover of Inchcape Retail, adding 54 car and van dealerships in a “monumental transaction” that will put it into the top five of the AM100 rankings of UK’s largest motor retailers.
Doing so expands Group 1 Automotive UK’s trading area into the Midlands and the North West of England, and into Wales, plus adds more sites in its existing geographic footprint in the East and South East of England.
It also broadens its brand portfolio with Audi, BMW, Jaguar Land Rover, Lexus, Mercedes-Benz, Mini, Porsche, Smart, Toyota, Volkswagen and Volkswagen Commercial Vehicles.
Group 1 said the former Inchcape businesses are expected to bring $2.7bn (£2.1 bn) of additional annual revenues. That means the enlarged UK business will climb the AM100 rankings to compete with Vertu Motors, which was ranked 4th in the 2023 AM100.
Martin Wastie, chief financial officer at Inchcape Retail, thanked his colleagues for nine months of hard work to get this “monumental transaction” over the line, and added that Group 1 UK and Inchcape Retail together “become one of the most preeminent forces in the automotive sector in the UK”, with excellent portfolios and scaleability.
It is Group 1’s biggest acquisition in the UK since it took over nine-dealership group Robinsons in East Anglia during 2021.
“This transformative acquisition effectively doubles our UK footprint, giving us access to new markets throughout England with a collection of outstanding brands,” said Group 1’s president and chief executive Daryl Kenningham. “We are delighted to welcome our new team members as we collaborate to deliver an excellent customer experience.”
Group 1’s senior vice president and chief financial officer Daniel McHenry added: “Inchcape Retail and its team bring a 50-year reputation to Group 1’s UK presence. This strategic acquisition is aligned with our capital allocation strategy, which enables us to identify opportunities that create additional scale and value for our shareholders.”
In 2013 Group 1 acquired Inchcape’s Ford dealership division.
