Car dealer group Inchcape will sell its UK retail operations to US-based Group 1 Automotive in a deal worth £346 million.
Inchcape, which operates more than 120 dealerships in the UK, said the sale allows it to become more distribution-focused. This will provide higher margins in the 40 countries in which it operates.
According to Car Dealer Magazine, 99% of Inchcape’s global revenue and operating profits will come from its distribution activities.
The sale to Group 1, which already operates in the UK, with 79 franchises and 3300 staff, is the latest from a North American buyer as a weak pound is making UK dealer groups irresistible targets.
