Group 1 Automotive
) has announced the acquisition of Volkswagen of New Port Richey in
Holiday, Florida. The company estimates that this new dealership
will contribute $34 million to its annual revenues. Moreover, it
will expand the company's geographic footprint in the Tampa Bay
metropolitan market and will reinforce its partnership with
Recently, the company also acquired a
Honda Motor Co.
) franchise and a Volkswagen franchise in the Panama City, Florida.
These two new ventures are expected to add about $52 million to the
company's annual revenues. Located in Springfield, Florida., the
dealerships will operate as Honda of Bay County and Volkswagen of
These dealerships will enhance Group 1 Automotive's geographic
presence in Florida. Moreover, the company will reap scale benefits
in its operations at the Florida Panhandle. It will also complement
the company's recently renovated World Ford Pensacola
Group 1 Automotive also acquired Essex Audi Group dealerships in
the Southeast region of England. With six Audi franchises, the
group will enhance the company's annual revenues by $275 million.
The dealerships are Stansted Audi, Chelmsford Audi, Southend Audi,
Harold Wood Audi, Chingford Audi and Docklands Audi. These are
located in the affluent Essex and East London region, which is
about 90 miles away from the company's existing dealerships.
Group 1 Automotive posted first-quarter 2012 earnings per share
of 97 cents, surpassing the Zacks Consensus Estimate of 89 cents
and the year-ago earnings of 64 cents. Profit went up 49.1% to
$23.1 million from $15.4 million in the year-ago quarter.
The company's revenues for the quarter came in at $1.66 billion,
up 18.1% from $1.41 billion in the year-ago quarter. Revenues from
new vehicles and used vehicles swelled 16.3% and 28.3%,
respectively, in the reported quarter.
Headquartered in Memorial City of Houston, Texas, Group 1
Automotive is one of the largest automotive retailers in U.S.,
offering 31 automotive brands. It has 121 automotive dealerships,
153 franchises and 28 collision centers in U.S. and UK. The
company offers new and used cars, light trucks and is also engaged
in sales financing activities.
In addition, the company provides insurance contracts,
maintenance and repair services along with vehicle parts to its
customers. It competes with
Automotive Group Inc.
. Currently, the company retains a Zacks #2 Rank, which implies a
short-term Buy rating.
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