Group 1 Automotive Inc.
) revealed that it has acquired four
Ford Motor Co.
) dealerships in southwest of London in the U.K. They are located
in the towns of Farnborough, Guildford, Wokingham and Bracknell.
The acquisition is expected to generate about $177 million in
estimated annual revenues. It will complement Group 1
Automotive's existing five BMW/MINI dealerships in Farnborough
and other market areas south and southwest of London. The
dealerships will trade under the "think Ford" brand name.
Last year, Group 1 had acquired Essex Audi dealership in the
southeast region of England. The dealership consists of six
) Audi franchises including Stansted Audi, Chelmsford Audi,
Southend Audi, Harold Wood Audi, Chingford Audi and Docklands
Audi. It expected to generate annual revenues of $275 million.
In 2012, Group 1 acquired 16 franchises with estimated annual
revenues of $715.0 million. The company also disposed of six
franchises during the year with trailing-12-month revenues of
Last month, Group 1 announced the acquisition of Shawnee Mission
Kia dealership in Overland Park, Kan. as part of its continuous
effort to expand brand offerings across the U.S. The acquired
dealership is expected to generate $65.0 million in estimated
annual revenues. It will complement the company's existing BMW,
MINI and Hyundai dealerships in the Kan. City area.
In the same month, the company also announced that it has entered
into an agreement to purchase Brazil's largest automotive
retailers UAB Motors Participacoes S.A. This acquisition is a
part of the company's strategy to expand in the fast-growing
UAB Motors will complement the Group 1's existing brands of
Toyota Motor Corp.
) with 2 dealerships, Nissan Motor with 4 dealerships, BMW with 4
dealerships and BMW/MINI with 2 dealerships. It will also add
four new brands - Renault (3 dealerships), Peugeot (3
dealerships), Land Rover (1 dealership) and Jaguar (1 dealership)
to Group 1's portfolio.
The yet-to-be-acquired dealerships are expected to generate
$650.0 million in estimated annual revenues and will boost
earnings per share by 3 cents-5 cents in 2013. The deal is
expected to close today, Feb 28.
Group 1 Automotive, a Zacks Rank #3 (Hold) stock, posted a 5.3%
rise in earnings per share to 99 cents in the fourth quarter of
2012 from 94 cents in the prior-year quarter but missed the Zacks
Consensus Estimate by 21 cents. Net income grew 9.4% to $24.0
million from $22.0 million in the fourth quarter of 2011.
Revenues increased 19.3% to $1.9 billion, driven by strong retail
new vehicle and used vehicle unit sales. Revenues from new
vehicle sales escalated 22.3% to $1.2 billion on a 20.8% increase
in unit sales to 33,164 vehicles. Revenues from retailed used
vehicles boosted 16.6% to $423.3 million on a 13.5% increase in
unit sales to 20,180 vehicles.
Headquartered in Memorial City of Houston, Texas, Group 1
Automotive was founded in 1997. The company is one of the largest
automotive retailers in U.S., which provides 31 automotive
brands. It has 120 automotive dealerships, 156 franchises and 31
collision centers in the U.S. and the U.K.
FORD MOTOR CO (F): Free Stock Analysis Report
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