Inchcape to buy Trivett for $115 million

AUSTRALIA’S largest prestige automotive group, Trivett, will be acquired by British-based global vehicle distributor and retailer Inchcape for £78 million ($A115m) on March 1.

Inchcape group chief executive Andre Lacroix described the transaction as “in line with our strategy of expansion in Asia-Pacific and emerging markets with luxury and premium brand partners”.

He said it was a “significant step in the development of our operations in Australasia”.

Inchcape’s Australian retail network comprises 17 dealerships and 21 service centres covering Isuzu Ute, Kia, Mitsubishi, Subaru and Volkswagen across New South Wales, Queensland and Victoria.

Trivett has 22 mostly Sydney based outlets with annual sales of around 9000 units.

It represents some of the world’s most desirable brands, including Aston Martin, Bentley, Lotus, McLaren and Rolls-Royce, premium marques BMW, Harley-Davidson, Jaguar, Land Rover and Volvo, and volume brands Honda, Kia, Peugeot, Skoda and Volkswagen.

From Top: Trivett executive chairman Greg Duncan Inchcape group chief executive Andre Lacroix.

Between its Australian retail network and successful Subaru distributorship, Inchcape sells around 50,000 vehicles per year and also runs the AutoNexus fleet services and logistics operation.

Trivett executive chairman Greg Duncan told GoAuto he expected Inchcape to follow a “business as usual approach” following the takeover.

“I think what you are going to find is that they are acquiring Trivett to maintain a growth of the Trivett brand and the Trivett people … because they acquiring the business for what it is.”

Mr Duncan confirmed that he and his son Matthew, who is CEO, will stay at Trivett for a year under a consulting contract.

“We have been asked to stay on under a consulting contract for a year to help transition the change of ownership and really just help Inchcape minimise any loss in the business of people,” he said.

“I believe, with the exception of my son and I, the entire management will be staying on, and they are a very important part of the business and the attraction to Inchcape.”

Mr Duncan revealed that Trivett had been approached by potential suitors several times in recent years but that Inchcape, which made its approach around a year ago, “seemed to be a more likely fit than anything else”.

“We were particularly impressed with them and they have a very strong culture that is based on customer service and customer first,” he said.

“We just felt that the two businesses were more compatible in culture and our objectives than any other that had approached us before.”

In addition to the profitable business that earned $17.6 million before interest and taxes on revenues of $573.5 million last year, Inchcape will take on Trivett’s 10 freehold properties in Sydney, valued at $46 million.

Mr Lacroix said Inchcape will “leverage our deep market knowledge, strong operational capability and superior processes to deliver outstanding customer service for our brand partners and to drive value for our shareholders”.