Automotive retailing giant Inchscape plc has acquired Russia’s largest car retailer in a deal worth $200 million (£100 million).
Automotive retailing giant Inchscape plc has acquired Russia’s largest car retailer in a deal worth $200 million (£100 million).
The London-headquartered company bought a 75 per cent stake in Moscow-based Musa Motors Group as part of its strategy of expanding in the emerging markets. The deal provides Inchscape with scale and additional Original Equipment Manufacturer (OEM) partners in Russia where it already has operations. It is also expected to be earnings accretive within the year.
Musa Motors operates 16 dealerships primarily in the Moscow region for portfolio brands BMW, MINI, Jaguar, Land Rover, Volvo, Chrysler, Jeep, Dodge, Rolls-Royce and Renault.
Musa Motors plans to open a further four retail centres in Moscow for existing and new OEM partners, resulting in an additional 21 Moscow-based retail centres for Inchscape, including its joint venture with Russian retailer Independence Group to retail Toyota.
Inchscape’s group CEO Andre Lacroix anticipates the deal will provide a strong springboard for a regional roll-out in Russia. He comments: “This acquisition positions us with one of the best and most modern networks of premium brands in Moscow. It provides us with the opportunity to operate a scaleable business in a fast-growing market. We expect our combined revenues in Russia to reach £1 billion in 2009.”
Russia’s car market, the largest in Central and Eastern Europe, is continuing to grow apace with brands sold by Musa Motors experiencing average growth of 50 per cent in 2007, according to Avostat. Last year, Musa Motors generated turnover and EBITDA of $597.4 million (£297.4 million) and $23.1 million (£11.5 million), respectively.
