Automotive retailer Group 1 Automotive Inc. ( GPI ) announced the acquisition of dealerships - Heller Ford of Ford Motor Co. ( F ) and Heller Hyundai in Southern California. The dealerships will be renamed as Ford of Escondido and Hyundai of Escondido.
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 business.
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 acquisitions.
In Dec 2013, Group 1 announced the acquisition of Jay Automotive Group, Inc. in Columbus, Georgia. The takeover included Toyota Motor Corp 's ( TM ) Jay Toyota Scion, and General Motors Co 's ( GM ) Jay Buick GMC; Jay Subaru of Columbus; Jay Mazda; and Volvo of Columbus dealerships.
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).
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