PH luxury brand distributor CATS sells majority share to Inchcape

CATS Motors dealership

CATS Group of Companies announced that it has forged an agreement with Inchcape that will give the latter a 60-percent stake in the local multi-brand firm.

KEY TAKEAWAYS

  • How much share did CATS Group of Companies sell to Inchcape?

    The Felix Ang-led group sold a 60-percent stake to Inchcape.
  • How much annual revenue is Inchcape expecting from the CATS Group of Companies?

    Inchcape is eyeing for around P8 billion in annual revenue from the CATS Group of Companies.
  • In a statement, CATS said that the deal — expected to be closed come the second half of the year — gives the Ang family as well as its associates in the enterprise the remaining 40-percent share while founder Felix Ang will continue to represent them on the Board in the management team

    The said move by Inchcape “will power CATS to the next step in its journey" by bringing global scale across more than 40 markets, leadership in digital and data, and EV expertise to the fast-growing and dynamic Philippine market.

    CATS Motors dealership

    CATS also noted that the joint venture is an example of Inchcape’s “Accelerate Strategy” in action by delivering on the latter's goal to expand its presence in Asia as well as in other underpenetrated markets “while becoming the undisputed number one distribution partner for automotive manufacturers and the employer of choice for current and future employees.”

    On the other hand, Inchcape said in a separate announcement the move expands the Group’s geographic reach and partnerships with Mercedes-Benz, Chrysler, DodgeJeepJaguar, and Land Rover, and broadens its relationships as it adds Ram to its list of brand partners.

    Inchcape Asia Pacific Chief Executive Officer Ruslan Kinebas expressed excitement over the acquisition.

    “We are very pleased to be entering the new and strategically important market of the Philippines through the acquisition of a controlling stake in CATS’ Philippine operations. As the leading luxury vehicle distributor in the market, CATS has excellent OEM relationships, and we look forward to working with them and the Ang family to drive the business forward,” he said.

    Felix Ang

    For his part, the CATS founder said, “After over 30 successful years of operating independently, we believe the time is now right for CATS to take the next step in our growth journey and in Inchcape we have found the right partner to drive us forward.”

    “The Philippines is a fast-growing market with an increasing demand for the luxury vehicles we provide, and we look forward to leveraging Inchcape’s leadership in digital and data to further build our distinctive market position through the provision of best-in-class customer service,” Ang added.

    Inchcape said that it is expecting to add £120 million (around P8 billion) of annual revenue to the company.

    Ang started CATS in 1989 as a car accessories, tires, and service center business and has grown to become a luxury vehicle distribution firm. It began its distribution of Mercedes-Benz, Chrysler, Jeep, Dodge and Ram vehicles in 2004, and in 2017, added Jaguar and Land Rover to its portfolio. Moreover, the company also has dealerships for Harley-Davidson and Mazda.

    Photos from CATS

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