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Inchcape To Sell Inchcape Fleet Solutions In UK To Toyota For £100 Mln

Inchcape Plc (INCH.L), a multi-brand automotive distributor and retailer, announced Thursday that it has agreed to sell its Inchcape Fleet Solutions business or IFS in the UK to Toyota Fleet Mobility GmbH for total cash consideration of 100 million pounds.

The transaction is expected to complete in the fourth quarter of 2019. The impact on Inchcape's 2019 trading profit will be minimal. The transaction consideration is payable in cash at completion and will give rise to a gain on disposal.

IFS business leases fleet vehicles and provides fleet management services to B2B customers including Toyota. In the year to December 2018, IFS contributed revenue of 60 million pounds and trading profit of 9 million pounds.

The latest sale to Toyota, a major customer of the business, follows recent disposals of less productive dealerships in the UK, and Retail-only disposals in Australia and China. Inchcape said it is focused on its core Distribution operations.

The use of the proceeds will be consistent with Inchcape's existing capital allocation policies under the Ignite strategy.

Together, the disposal of IFS, six Retail sites in Australia, three Retail sites in China and seven Retail sites in the UK will generate about 250 million pounds of cash inflow with an overall significant net gain on disposal and on a combined trading profit base of about 18 million pounds.

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