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Inchcape PLC - London-based company provides distribution services to original equipment manufacturers in the automotive sector - Completes the disposal of its UK Retail operations to the UK arm of New York-listed automotive retailer Group 1 Automotive Inc. It says the sale will complete Inchcape’s ‘transformation into a pure-play [automotive] distribution operator, with a diversified and scaled global business’. Adds that ‘distribution is higher-margin, more capital?light, higher return, more cash-generative, compared to retail-only businesses.’
The £346 million sale was announced back in April.
Chief Executive Duncan Tait comments: ‘We are pleased to have completed the divestment of our UK retail business, which represents a major strategic inflection point for Inchcape, as we deliver on our ambition of becoming the leading distribution partner to our OEM partners around the world.’
Inchcape also on Thursday launches the £150 million share buyback that it announced in its interim results on Tuesday. The buyback was increased from £100 million. The buyback will be run by US investment bank Jefferies International Ltd and will be completed by the end of March next year.
Current stock price: 859.50 pence, up 2.0% in London on Thursday afternoon
12-month change: up 6.6%
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