The completion of the transaction was announced this morning (May 3) via the London Stock Exchange, where Inchcape said the addition of companies boosted its reach with Suzuki, Mercedes-Benz, Subaru and Stellantis.
It has also expanded its relationships with OEMs, after adding Chrysler to its portfolio of brand partners.
The acquisitions – which took place as the Simpson Group celebrates its fiftieth anniversary – were for an unspecified amount, but experts have estimated they would cost Inchcape between £50m and £55m.
They are expected to add around £120 million annually to the multinational vehicle distribution and retail equipment revenue.
ITC, based in Barbados, distributes in more than 30 territories, including Jamaica, Guadeloupe, Trinidad and Tobago as well as Martinique. The vehicles are distributed through a network of about 50 dealers, most of whom are independent.
Meanwhile, Simpson Motors has one large dealership in Barbados, distributing passenger cars for Suzuki, Mercedes-Benz, Stellants and Subaru, as well as commercial vehicles for Isuzu, Fuso, JCB and John Deere.
Duncan Tait, CEO of The Inchcape Group, said: “We welcome the incredible talent and expertise of ITC and Simpson Motors to the Inchcape family and look forward to building on the exciting opportunity for the group in the Caribbean.
“The Americas and Africa is our fastest growing region, with ITC and Simpson adding to strengthen distribution and OEM partnerships as we implement our Accelerate strategy.”
Sir Kevin Simpson, founder of The Simpson Group, added: “On our group’s 50th anniversary, I am delighted that Inchcape, a global company built on a strong foundation of heritage and values, will take Simpson Motors and ITC into the future.
It is exciting to know that our employees will be able to benefit from the strength that comes from our network of regional and international partnerships, and that this will open up great opportunities for growth and expansion.
“I would like to wish Inchcape, our dealer partners, and all my colleagues at Simpson Motors and ITC the best for the future.”
This comes on the heels of Inchcape releasing its update for the first quarter of 2022, in which It expected its pre-tax profit for the year to be 25 per cent higher than in 2021 at £300m.
Analysts at financial services group Zeus Capital today (3 May) raised their forecast for Inchcape’s core earnings before tax by 2.4 per cent to £300.3 million as a result.
However, they lowered their estimate of its revenue for the financial year to 7,068.1 billion pounds, which is 7.5 per cent below Inchcape’s revenue figure for 2021.