Group 1 Automotive Inc.
) revealed that it has closed the previously announced
acquisition of the Brazil's largest automotive retailers UAB
Motors Participacoes S.A. The company has purchased 100% of the
outstanding shares and interest in 18 dealerships of UAB for
about $47.4 million cash and 1.45 million shares of its common
stock along with the assumption of roughly $62 million of net
non-floor plan debt.
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UAB Motors has 18 dealerships with 22 franchises, representing
eight major brands and five collision centers in the Sao Paulo
metro market and the key metropolitan markets in the adjacent
state of Parana.
It will complement the Group 1's existing brands of
Toyota Motor Corporation
) with 2 franchises,
Nissan Motor Co. Ltd.
) with 4 franchises, BMW with 4 franchises and MINI with 2
franchises. It will also add four new brands - Renault with 3
franchises, Peugeot with 3 franchises, Land Rover with 2
franchises and Jaguar with 2 franchises to Group 1's portfolio.
The acquired dealerships are expected to generate $650.0 million
in estimated annual revenues and will boost earnings per share by
3 cents to 5 cents in 2013. Group 1 expects to incur about $6.5
million in costs related to the deal in the first quarter of the
year. The business will continue to be operated by its existing
Recently, Group 1 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.
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
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.