Inchcape has successfully concluded the sale of its UK retail operations to Group 1 Automotive, with a transaction value of £346m ($443.5m).

The deal, which was initially made public in April, encompasses the company’s automotive retailing business and the associated real estate holdings.

The divestment has been wrapped up following approval from the UK’s Financial Conduct Authority on 20 July 29.

This sale signifies the conclusion of Inchcape’s retail endeavours in the UK, while simultaneously expanding Group 1’s presence in the region two-fold.

With the sale of its retail showrooms, Inchcape’s business model will shift focus towards automotive distribution.

Inchcape group CEO Duncan Tait said: “We are pleased to have completed the divestment of our UK retail business, which represents a major strategic inflection point for Inchcape, as we deliver on our ambition of becoming the leading distribution partner to our OEM partners around the world.

“I would like to express my sincere gratitude to our former UK colleagues for their service and commitment over the years and I know the business will play an important part in further developing Group 1’s position in the UK automotive retail market.”

Group 1 Automotive, which operates 260 dealerships across the US and the UK, will integrate Inchcape’s 54 locations into its existing network.

The company said it expects these dealerships to generate $2.7bn in annual revenue, increasing its total acquired revenues for 2024 to $3.8bn for the year to date.

The acquisition allows Group 1 Automotive to extend its operations into strategic regions such as the Midlands, the North-West, and Wales.

The company’s brand portfolio is now enhanced with prestigious names including Audi, BMW/Mini, Jaguar Land Rover (JLR), Lexus, Mercedes-Benz/Smart, Porsche, Toyota, Volkswagen, and Volkswagen Commercial Vehicles.

Group 1 president and CEO Daryl Kenningham said: “This transformative acquisition effectively doubles our UK footprint, giving us access to new markets throughout England with a collection of outstanding brands. We are delighted to welcome our new team members as we collaborate to deliver an excellent customer experience.”

Group 1 CFO Daniel McHenry said: “Inchcape Retail and its team bring a 50-year reputation to Group 1’s UK presence. This strategic acquisition is aligned with our capital allocation strategy, which enables us to identify opportunities that create additional scale and value for our shareholders.”