By Elena Vardon
Inchcape PLC said Friday that it has agreed to buy Mercedes-Benz Group AG’s Indonesian business in a joint venture with local partner Indomobil Sukses Internasional.
The global automotive distributor said it will acquire 70% of the existing Indonesian subsidiaries from the seller while Indomobil will buy the remaining 30%. It didn’t mention the value of the deal.
The transaction, which is expected to be completed in late 2023 subject to customary conditions, will expand Inchcape’s presence in the country and in the APAC region, it said.
The business, which includes distribution and assembly operations, is expected to add around 200 million pounds ($247.7 million) of annualized revenue and be accretive to its operating margin, Inchcape said.
Inchcape anticipates its pro forma leverage position at the end of 2023 to be unchanged from a year earlier, it said.
Write to Elena Vardon at elena.vardon@wsj.com