Group 1 Automotive Acquires Mercedes-Benz Dealership in Anaheim, California

Rhea-AI Summary

Group 1 Automotive (NYSE: GPI) announced its acquisition of Mercedes-Benz and Sprinter franchises in Anaheim, California. This strategic move is expected to generate $200 million in annual revenues and enhances Group 1's relationship with Mercedes-Benz, expanding its total to 17 dealerships across the U.S. and U.K. The company has acquired a total of $940 million in annual revenues in 2022 following $2.5 billion in 2021. Group 1 maintains a balanced capital strategy, having repurchased around 21% of its outstanding shares since November 2021.

Positive

• Acquisition expected to generate $200 million in annual revenues.
• Expansion of relationship with Mercedes-Benz to 17 dealerships.
• Total acquired revenues of $940 million in 2022, following $2.5 billion in 2021.
• Repurchased approximately 21% of outstanding shares since November 2021.

Negative

• None.

-    Expected to Generate $200 Million in Annual Revenues

HOUSTON, Dec. 1, 2022 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) ("Group 1" or the "Company"), an international, Fortune 300 automotive retailer with 204 dealerships located in the U.S. and U.K., today announced the expansion of its U.S. operations with the acquisition of Mercedes-Benz and Sprinter franchises in Anaheim, California.  This acquisition expands Group 1's global relationship with Mercedes-Benz to 17 dealerships in the U.S. and U.K.  

Group 1's Chief Executive Officer Earl Hesterberg stated, "We want to welcome the team at Mercedes-Benz of Anaheim to the Group 1 family and are extremely pleased to expand our existing operations in Southern California with this great brand.  Our strong relationship with Mercedes-Benz and experience in this market area make this dealership an excellent addition to our portfolio."

Group 1 has now acquired $940 million of annual revenues in 2022, which follows $2.5 billion of acquired revenues in 2021. The Company has also continued to maintain its balanced capital allocation approach by repurchasing approximately 21% of its outstanding shares since November 2021.

ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 204 automotive dealerships, 275 franchises, and 47 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:
Jason Babbitt
Vice President, Treasurer
Group 1 Automotive, Inc.
jbabbitt@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

 

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SOURCE Group 1 Automotive, Inc.

FAQ

What are the details of Group 1 Automotive's acquisition of the Mercedes-Benz dealership?

Group 1 Automotive acquired Mercedes-Benz and Sprinter franchises in Anaheim, expanding their dealership portfolio with expected annual revenues of $200 million.

How does this acquisition impact Group 1 Automotive's financial performance?

This acquisition is projected to add $200 million in annual revenues, contributing to Group 1's total acquired revenues of $940 million in 2022.

What is the significance of this acquisition for Group 1 Automotive?

It strengthens Group 1's relationship with Mercedes-Benz, increasing their footprint to 17 dealerships across the U.S. and U.K.

How much of its shares has Group 1 Automotive repurchased recently?

Group 1 has repurchased approximately 21% of its outstanding shares since November 2021.