Global automotive distributor, Inchcape, is expanding its APAC distribution footprint by entering the Phillipines market with seven brands.
Inchcape is forming a joint venture with the CATS Group which is a distributor of luxury vehicles in the Philippines, and it will also acquire a controlling stake in CATS.
CATS was founded in 1989 by Felix R. Ang, originally as Car Accessories, Tyres, and Service Centre.
In 2004 it became the distributor of Mercedes-Benz, Chrysler, Jeep, Dodge and RAM, and in 2017 it was awarded the distribution rights for both Jaguar and Land Rover.
It also operates dealerships for Harley-Davidson Motorcycles and Mazda. The company has 450 employees across its distribution and retail operations.
Inchcape will acquire a 60% stake in CATS, with the remainder being owned by the Ang family and its associates, who will also continue to be represented on the CATS Board, by Felix Ang, and in the management team
CATS is expected to add c.£120m of annualised revenue and be accretive to the Group’s operating margin. The transaction remains subject to customary conditions with completion anticipated in the second half of 2023.
The deal will expand Inchcape’s distribution footprint as it enters the Philippines, further building on its established presence in the APAC region. It will also strengthen the Group’s geographic reach and partnerships with Mercedes-Benz, Chrysler, Dodge, Jeep, Jaguar and Land Rover, and broaden its relationships, adding RAM to its list of brand partners.
“We are very pleased to be entering the Philippines, a country with a large and fast-growing economy, where CATS is the leading distributor of luxury vehicles,” Inchcape APAC chief executive Ruslan Kinebas says.
“The Ang family has built long-standing successful relationships with its OEM brand partners and its customers. We are looking forward to building on their achievements and accelerating the company’s digitalisation journey, driving the business to further success.
“This acquisition is a significant milestone for Inchcape in APAC and an excellent example of our Accelerate strategy in action; extending our global distribution leadership by expanding our OEM brand footprint in markets where vehicle penetration is low but expected to grow quickly.
“The combination of Inchcape’s leading global position and digital and data capabilities means we are well placed to successfully execute our strategy to accelerate growth both organically and via industry consolidation,” he says.
Inchcape’s presence in Asia-Pacific started in 1967 with the acquisition of Borneo Motors, a company founded in 1925 to distribute vehicles in Singapore.
Inchcape APAC has since expanded significantly and distributes new vehicles and parts in Australia, Brunei, Hong Kong, Indonesia, Guam, Macau, New Zealand, Saipan, Singapore and Thailand for Toyota, Subaru, Suzuki, Jaguar Land Rover, BMW Group, Chevrolet, Great Wall Motors, Peugeot Citroen, Harley-Davidson, Daimler Trucks and Buses, Hino and other commercial vehicle partners.
In 2021, Inchcape opened a Digital Delivery Centre in the Philippines, providing digital and data analytics support and insights for the Group. Inchcape APAC is headquartered in Singapore and employs around 3400 people across the region.
Join the conversation