Inchcape sells fleet business to Toyota for £100m
Auto distributor Inchcape said it was selling its fleet lease and management unit to Japan's Toyota for total cash £100m in cash as it focused on higher margin operations.
Inchcape has in the last month sold “less productive” dealerships in the UK, as well as forecourts in Australia and China.
“The scope of the (fleet) business means there is limited synergy with Inchcape's UK retail dealership business, where Inchcape acts as a franchisee of brands including BMW, MINI, JLR, Mercedes, VW, Audi, Porsche, Toyota and Lexus,” the company said on Thursday, adding that its UK dealership business remained “strategically important” to the group.
The deal, which should complete in the final quarter, would result in a gain on disposal, Inchcape said. The fleet business contributed revenue of £60m and trading profit of £9m in 2018.