Inchcape Silver Star Acquisition: Strengthening Bulgaria and Deepening Mercedes-Benz Partnership

Research evidence excerpt

Inchcape Silver Star Acquisition: Strengthening Bulgaria and Deepening Mercedes-Benz Partnership

C A Z E N O V E Europe Equity Research

22 May 2026

Inchcape Neutral

INCH.L, INCH LN

Silver Star Acquisition: Strengthening Bulgaria and Price (21 May 26):819p

Deepening Mercedes-Benz Partnership Price Target (Dec-27):880p

Our Take: Inchcape has agreed to acquire Silver Star, the official distributor of European Autos & Auto Parts

ACMercedes-Benz passenger vehicles and Daimler Trucks and Buses in Bulgaria. Akshat Kacker, CFA

Inchcape has operated in Bulgaria since 1996, currently holding a ~13% market (44-20) 7134-6775

share in passenger vehicles and ~6% in light commercial vehicles through akshat.kacker@jpmorgan.com

longstanding partnerships with Toyota and Lexus. Inchcape's distribution J.P. Morgan Securities plc

partnership with Mercedes-Benz, which began in 2019, now spans all three of its Jose M Asumendi

regions. This acquisition will further strengthen Inchcape's passenger vehicle (44-20) 7742-5315

jose.m.asumendi@jpmorgan.com

market share in Bulgaria and expand its presence with MBG into the truck J.P. Morgan Securities plc

category. The transaction is subject to customary conditions and approvals and is

Piyush Singla

expected to complete in Q3 2026. Post acquisition, we expect the leverage ratio (ex (91-22) 6157-3324

IFRS) to be ~0.5x, vs Inchcape’s longer-term target of ~1x. piyush.singla@jpmorgan.com

J.P. Morgan India Private Limited

• Noteworthy Areas: 1) Financials: In FY25, Silver Star generated revenues

of £240m (€280m), with operating margins accretive to both the region and the Specialist Sales contact details:

group, and employed 500 colleagues. The business operates a vertically- Sam Edmunds - Specialist Sales -