Group 1 Automotive is to buy additional dealerships with aggregate revenues of approximately $US530 million.
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Completion of the deal will see Group 1 owning 69 dealerships with 106 franchises, 28 different brands, and 25 collision service centres in Texas, Oklahoma, Florida, Georgia, New Mexico, Colorado, Louisiana, Massachusetts and California.
The latest acquisitions include 10 franchises in three markets which will take the company’s annual revenue rate to over $4.5 billion in keeping with a previously stated goal of seeking platform and tuck-in acquisitions in 2002.
The purchase price for the three planned transactions is approximately $85 million which will be paid in cash.
The purchases are subject to the usual closing conditions, including approval from various manufacturers, the board of directors and government agencies, as well as the completion of due diligence, but Group 1 expects to close all deals by the end of third quarter 2002.
Purchasing the Miller Auto Group, with annual revenues of approximately $400 million and six dealerships located in Culver City and Van Nuys, California, is Group 1’s initial entry into the largest car market in the United States. The operation consists of two Honda franchises and Toyota, Nissan, Infiniti and Mitsubishi franchises in this major market for imported vehicles.
Fred and Mike Miller will continue to operate the business, which has been in their family for almost 60 years.
Group 1 has also agreed to acquire BMW, Buick and Jeep franchises in Tulsa, Oklahoma with annual revenues of $80 million. These franchises will become part of the Bob Howard Auto Group which is the largest dealership group in the state of Oklahoma.
The company has also agreed to acquire a Nissan dealership in southwest Houston with annual revenues of $50 million and that dealership is near Group 1’s Sterling McCall Toyota dealership, the US’s second largest Toyota shop, and will become part of the Sterling McCall Automotive Group.
