Inchcape Plc has agreed to sell its U.K.-based fleet leasing business, Inchcape Fleet Solutions (IFS), to Toyota Fleet Mobility for £100 million ($123 million) in cash. Toyota is IFS’s oldest OEM partner. The deal is set to close by year end.
IFS operates as a franchisee for BMW, Mercedes-Benz, Volkswagen, Porsche, Toyota and Lexus. The sale will add IFS’s 20,000-vehicle fleet to Toyota’s fleet of 12,379 vehicles, according to 2018 data compiled by FleetLeasing.
This acquisition is the latest in Toyota Financial Services’ increased investment into the UK market. In May, TFS invested an undisclosed amount into London-based ridesharing startup Faxi to scale its carpooling platform across Europe.
Inchcape’s sale of IFS will allow it to concentrate on core distribution activities, according to a release, and follows the sale of seven UK-based dealerships, six Australian dealerships and three Chinese dealerships. These sales, including IFS to Toyota, are expected generate £250 million ($307.6 million) in cash revenue for the company.
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