Group 1 Automotive Inc. ( GPI ) recently acquired a Mercedes-Benz dealership in Boerne, TX. The dealership contains a Mercedes-Benz Sprinter commercial vehicle franchise as well. The automotive retailer will operate the dealership under the name Mercedes-Benz of Boerne.
Group 1 expects the dealership to generate annual revenue of approximately $135 million. Moreover, it will expand the company's operations in the San Antonio metropolitan market. It will also strengthen the company's business association with Daimler AG's ( DDAIF ) Mercedes-Benz.
Group 1 regularly acquires dealerships and franchises to expand its business. As of Aug 19, 2014, the company owns 154 automotive dealerships, 197 franchises, and 38 collision centers in the United States, United Kingdom and Brazil.
In Jul 2014, the company acquired two dealerships, namely Munday Chevrolet and Munday Mazda in Houston, TX. The Munday Chevrolet dealership is the second largest General Motors ( GM ) Chevy dealership in Texas. The acquisitions are expected to boost Group 1's revenues by $225 million per annum.
In May, Group 1 acquired the South Point Kia dealership in Austin, TX. The acquisition is expected to boost its revenues by about $55 million annually.
In April, Group 1 acquired the Alex Rodriguez Mercedes-Benz dealership in League City, TX. The company will rename the dealership, which is expected to generate annual revenue of $85 million, as Mercedes-Benz of Clear Lake. Concurrently, the company opened a new South Loop Hyundai dealership facility in Houston.
In January, Group 1 announced the acquisition of 2 dealerships, namely 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 acquisitions are expected to boost annual revenue of Group 1 by $135 million.
Currently, Group 1 carries a Zacks Rank #3 (Hold).
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