Inchcape will buy family-run Grupo Rudelman, an automotive distribution business in Central America, as the UK car dealership chain looks to strengthen its presence in emerging markets.
Inchcape, which trades in more than two dozen countries, will pay Grupo Rudelman's shareholders $284 million, gaining access to the Suzuki-led distribution business in Costa Rica and Panama, the UK firm said in a statement.
Costa Rica and Panama present structural growth opportunities, given their low vehicle penetration rates and economic growth expectations, Inchcape said.
The deal comes nearly a month after Inchcape reported an over 38 percent rise in annual pretax profit, helped in part by a strong performance in Asia and emerging markets.
Inchcape said the acquisition of Grupo Rudelman, which sold 12,500 new Suzuki vehicles in 2017, would add to earnings in the first full year post-acquisition by mid-single digits in percentage terms.
The cash-free and debt-free basis deal will also improve Inchcape's operating margin, the company said.