Inchcape PLC: Bulgarian acquisition builds share to c16%. We estimate deal is c3% EPS accretive.

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Inchcape PLC: Bulgarian acquisition builds share to c16%. We estimate deal is c3% EPS accretive.

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Inchcape PLC

Bulgarian acquisition builds share to c16%.

We estimate deal is c3% EPS accretive.

Reiterate Rating: BUY | PO: 1,173 GBp | Price: 818.50 GBp

Bulgarian acquisition c3% EPS accretive 22 May 2026

Inchcape has announced the acquisition in Bulgaria of Silver Star, the Mercedes Equity

distribution partner across passenger vehicles, trucks and buses. The deal, which is

subject to customary conditions and approvals and is expected to complete in Q3, will Tim Ramskill, CFA >> Research Analyst

add £240m to revenues, c2.6% of group and is noted as being margin accretive at MLI (UK)

regional and group level. Given European margins of 4.6% in 2025 and group margins of +44tim.ramskill@bofa.com20 7996 3050

6.2%, if we assume margins of 8-9% this implies an additional £19-22m being added to Hal Potter, CFA >>

group EBIT (3-4% of our 2026E estimate). No acquisition price has been disclosed but Research Analyst

MLI (UK)

typical multiples c0.6-0.7x sales implies £145-170m and we estimate overall EPS +44 20 7996 3010

accretion of c3%. This is before any additional application of best practice or modest hal.potter@bofa.com

cost synergies. We understand Mercedes brokered the deal. Jamie Murray >>

Research Analyst

44 20 7996-3794Consistent with strategy to build scale jamie.murray3@bofa.com

We view the acquisition as consistent with plans to bulk out INCH’s presence in existing

markets given the existing Bulgarian business has 13% market share (with Toyota and

Lexus) and we estimate the Mercedes share is just over 3%. We view the deal as a small

positive and remember the share buyback announced at FY was a little smaller as Stock Data