Group 1 Automotive announces the acquisition of two dealerships in Texas
Posted: October 4, 2021 at 4:07 p.m. EDT|Update: 3 hours ago
HOUSTON, October 4, 2021 / PRNewswire / – Group 1 Automobile, Inc. (NYSE: GPI), (“Group 1” or the “Company” or “Buyer”), a Fortune 500 international automotive retailer with 190 dealers located in the United States, United Kingdom and Brazil, today announced the acquisition of Classic Chrysler Dodge Jeep Ram from Denton and classic Mazda from Denton within the largest Dallas-Fort Worth Texas metropolitan area. These two stores are expected to generate approximately $ 150 million in annualized income.
âWe are delighted to expand our presence in the growing sector Dallas-Fort Worth metro market with these strong brands, âsaid Daryl kenningham, president of American and Brazilian operations for Group 1 Automotive.
Group 1 currently operates 10 dealerships representing 10 brands in the Dallas-Fort Worth Marlet.
Since the start of 2021, group 1 has finished $ 570 million earned income. The acquisition of these two stores brings the total number of Group 1 dealers in the United States to 119. With the previously announced pending acquisition of Prime Automotive Group, which is expected to be finalized upon completion November 2021, the total earned income of the Company should be at least $ 2.4 billion by the scheduled closing date, and the total number of Group 1 dealerships would increase to 220 locations worldwide, which would include 149 locations in the United States.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 190 car dealers, 247 franchisees and 48 collision centers in the United States, the United Kingdom and Brazil, which offer 33 brands of cars. Through its dealers, the Company sells new and used cars and light trucks; organizes the financing of related vehicles; sells service contracts; provides auto maintenance and repair services; and sells vehicle parts.
Investors, please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its activities and its operating results.
To the extent that the statements contained in this press release are not statements of historical fact, these statements constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release may include statements relating to goals, plans and expectations regarding the expected benefits of the proposed transaction, management plans, objectives for future operations, scale and performance, integration plans and the expected synergies, the timing of the proposed transaction, our financial condition, results of operations, market position, business strategy and expectations of our management with regard to, among others: changes in general economic and business conditions , including the impact of COVID-19 on the automotive industry in general, the automotive industry automotive retail in particular and our customers, suppliers, vendors and business partners; our relationships with automobile manufacturers; cash flow from operations and availability of capital; capital expenditure; the amount of our debt; the completion of current and future acquisitions and disposals; future performance targets; general economic trends, including levels of consumer confidence, interest rates and fuel prices; and trends in the automotive retail industry.
Here are some, but not all, of the factors that could cause actual results or events to differ materially from those anticipated, including: the occurrence of any event, change or other circumstance that could result in termination of the purchase agreement ; the risk that necessary regulatory or third party approvals may not be obtained or may be obtained under conditions that are not anticipated; the risk that the proposed transaction will not be completed in a timely manner; the risks that any of the closing conditions of the proposed acquisition will not be met or will not be met in a timely manner; risks associated with the disruption of the management time of current business operations as a result of the proposed acquisition; failure to realize the expected benefits of the proposed acquisition; rapid and efficient non-integration of acquisition; the effect of the announcement of the proposed acquisition on their operating results and activities and on the ability of Group 1 and Prime Automotive Group to retain and hire key personnel, to maintain relationships with suppliers; our ability to execute our business strategy; the annual rate of new vehicle sales in the United States; our ability to generate sufficient cash flow; our ability to improve our liquidity position; market factors and the future economic environment, including consumer confidence, interest rates, the price of oil and gasoline, the level of manufacturer incentives and the availability of consumer credit; the reputation and financial position of the automobile manufacturers whose brands we represent and our relationships with these manufacturers, and their ability to successfully design, manufacture, deliver and market their vehicles; significant disruptions in the production and delivery of vehicles and parts for any reason, including acts of God, affecting the manufacturers whose brands we sell; our ability to enter into, maintain or renew our framework and concession agreements on favorable terms; the inability of our concession operations to meet expected levels or meet expected performance targets; our ability to successfully integrate recent and future acquisitions; changes in, non-compliance with or inability to comply with laws and regulations governing the operation of automobile franchises, accounting standards, environment and tax requirements; our ability to leverage the gains from our dealer portfolio; high levels of competition in the automotive retail industry which can put pressure on the prices of the products and services we offer; our ability to execute our capital expenditure plans; our ability to comply with our debt or lease commitments and to obtain waivers of commitments if necessary; and any negative outcome of any future litigation. These risks, uncertainties and other factors are disclosed in the Group 1 annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and other periodic and current reports filed with the Securities and Exchange Commission of from time to time.
These forward-looking statements and these risks, uncertainties and other factors speak only as of the date of this press release. We expressly disclaim any obligation or commitment to release any update or revision to any forward-looking statement contained herein, whether as a result of new information, future events or otherwise.
Manager, Investor Relations
Group 1 Automobile, Inc.
713-647-5741 | [email protected]
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automobile, Inc.
713-647-5770 | [email protected]
Pierpont Communications, Inc.
713-627-2223 | [email protected]
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