Franchised automotive retailer Inchcape has signed an agreement to divest three Australian retail-only sites to Sime Darby Motors for a total consideration of £63m ($77.63m).
The transaction follows the sale of three retail locations to other parties in May and July this year.
The three retail sites operate under the Trivett banner with brands, such as Volkswagen, BMW, MINI and Jaguar Land Rover.
The deal is expected to streamline the retailer’s Australasia business, covering distribution activities of Subaru and Peugeot Citroen, and their retail sites.
The company also expects that the deal would reduce its retail-only operations outside Subaru and Peugeot Citroen contracts.
The company has also identified a long-term growth potential in the Australasia market through its distribution contracts.
Inchcape Group CEO Stefan Bomhard said: “This transaction is another demonstration of strategic progress under Ignite and the focus on our core distribution activities which generate 90% of our group trading profit.
“Today’s announcement demonstrates the disciplined utilisation of capital towards this high returning and capital light part of the market where I continue to see both organic and inorganic opportunities for Inchcape.
“In line with the Ignite strategy and our commitment to be the OEM partner of choice, Inchcape has completed ten Distribution deals since 2016. I would like to thank our teams for their professionalism and commitment to remaining focused on delivering our objectives during this transitional period.”
The automotive retailer expects to close the transaction in the fourth quarter of this year, after receiving final approvals from original equipment manufacturer partner and regulatory authority.
Inchcape currently operates business in 32 markets offering new and used vehicles under a range of major car brands to its customers, along with parts, service, finance and insurance.