Group 1 Automotive Acquires Chevrolet Dealership in Estero, Florida

Rhea-AI Summary

Group 1 Automotive, Inc. (NYSE: GPI) has announced the acquisition of Estero Bay Chevrolet in Estero, Florida, a top-ranked dealership expected to generate $150 million in annual revenues. This move will enhance Group 1's presence in Florida, particularly in the fast-growing Fort Myers area, and reflects the company's strategic expansion plans. As of March 28, 2023, the company has repurchased 180,982 shares at an average price of $191.85, totaling $34.7 million. Group 1 aims to leverage its robust cash flow for further acquisitions while returning value to shareholders.

Positive

• Acquisition expected to generate $150 million in annual revenues.
• Strategic expansion into the fast-growing Fort Myers area.
• Aggressive capital deployment through acquisition while returning capital to shareholders.

Negative

• None.

-  Expected to Generate $150 Million in Annual Revenues

-  Share Repurchase Update Provided

HOUSTON, March 28, 2023 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), an international, Fortune 300 automotive retailer with 205 dealerships located in the U.S. and U.K., today announced the expansion of its U.S. operations with the acquisition of Estero Bay Chevrolet in Estero, Florida.  The dealership is located near the fast growing city of Fort Myers in Southwest Florida.  Estero Bay Chevrolet is the 5^th ranked Chevrolet dealership in new vehicle volume in the state of Florida.  The dealership is expected to generate $150 million in annual revenues.

The Company is also updating its year-to-date repurchase activity.  Through March 28, 2023, 180,982 shares at an average price of $191.85, for a total of $34.7 million have been repurchased. 

Group 1's President and CEO Daryl Kenningham stated, "We want to welcome the team at Estero Bay Chevrolet to the Group 1 family and are pleased to further expand our brand footprint and scale in Florida.  Our strong cash flow and robust balance sheet continues to enable aggressive capital deployment through acquisition while also returning capital to our shareholders."

ABOUT GROUP 1 AUTOMOTIVE, INC.

Group 1 owns and operates 205 automotive dealerships, 276 franchises, and 46 collision centers in the United States and the United Kingdom that offer 35 brands of automobiles. Through its dealerships and omni-channel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 discloses additional information about the Company, its business, and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, www.facebook.com/group1auto, and www.twitter.com/group1auto.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our strategic investments, goals, plans, projections and guidance regarding our financial position, results of operations and business strategy, including the annualized revenues of recently completed acquisitions or dispositions and other benefits of such currently anticipated or recently completed acquisitions or dispositions. These forward-looking statements often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, (i) the impacts of COVID-19 and the armed conflict in Ukraine on our business and the supply chains upon which our business is dependent, (j) the impacts of continued inflation and any potential global recession, (k) our ability to maintain sufficient liquidity to operate, (l) the risk that proposed transactions will not be consummated in a timely manner, and (m) our ability to successfully integrate recent and future acquisitions. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Investor contacts:
Terry Bratton
Manager, Investor Relations
Group 1 Automotive, Inc.
tbratton@group1auto.com

Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223
cwoods@piercom.com

View original content:https://www.prnewswire.com/news-releases/group-1-automotive-acquires-chevrolet-dealership-in-estero-florida-301782641.html

SOURCE Group 1 Automotive, Inc.

FAQ

What is the significance of Group 1 Automotive's acquisition of Estero Bay Chevrolet?

The acquisition enhances Group 1's market presence in Florida and is expected to generate $150 million in annual revenues.

How much has Group 1 Automotive spent on share repurchases in 2023?

Group 1 Automotive has repurchased 180,982 shares for a total of $34.7 million through March 28, 2023.

What is the location of the newly acquired Estero Bay Chevrolet dealership?

Estero Bay Chevrolet is located in Estero, Florida, near the fast-growing city of Fort Myers.

How does the acquisition affect Group 1 Automotive's financial strategy?

The acquisition is part of Group 1's strategy to leverage strong cash flow for expansion while also returning capital to shareholders.