Group 1 Automotive Inc.
) announced the acquisition of dealerships - Heller Ford of
Ford Motor Co.
) and Heller Hyundai in Southern California. The dealerships will
be renamed as Ford of Escondido and Hyundai of Escondido.
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The acquisition is expected to boost annual revenues of Group 1
by $135 million. Its revenues increased 18.4% year over year to
$2.34 billion in the third quarter of 2013, beating the Zacks
Consensus Estimate of $2.31 billion. The improvement was driven
by strong performances across its business with higher retail new
vehicle sales and better revenues from the Finance and Insurance
Group 1 expanded its footprint in the San Diego metropolitan area
with these new acquisitions. The company regularly acquires
dealerships to expand its business and intends to pursue further
In Dec 2013, Group 1 announced the acquisition of Jay Automotive
Group, Inc. in Columbus, Georgia. The takeover included
Toyota Motor Corp
) Jay Toyota Scion, and
General Motors Co
) Jay Buick GMC; Jay Subaru of Columbus; Jay Mazda; and Volvo of
The dealerships will be renamed as Rivertown Toyota; Rivertown
Scion; Rivertown Buick GMC; Rivertown Subaru; Rivertown Mazda;
and Volvo of Columbus, respectively. Group 1 expects these
dealerships to add $150 million to the company's annual revenues.
Moreover, Group 1, in Oct 2013, completed the acquisition of Joe
Marina Honda in Tulsa, OK. The dealership will operate under the
new name of South Pointe Honda. The deal is expected to generate
annual revenues of $60 million.
In addition to the recent acquisitions, Group 1 also announced
the appointment of a few important individuals to the management
team of its Brazilian operations. The positions include director
of commercial operations, director of finance and chief financial
officer and director of human resources and administration.
Group 1 Automotive is one of the largest automotive retailers in
the U.S. and offers 34 automotive brands. Currently, the company
retains a Zacks Rank #3 (Hold).