Thursday, April 05, 2007
Group 1 Automotive Acquires New California Platform; On Track for 2004 Acquisition Target
Group 1 Automotive, Inc. (NYSE:GPI), a Fortune 500 specialty retailer, today announced that it has completed the acquisition of the Peterson Automotive Group, which consists of two dealerships in the Sacramento area and another two in San Diego with total annual revenues of approximately $320 million.
"This acquisition gives Group 1 outstanding operations in three of the most desirable markets in California, including our existing Los Angeles platform, the Miller Automotive Group," said B.B. Hollingsworth Jr., Group 1's chairman, president and chief executive officer. "We are pleased that Chuck Peterson has agreed to join Group 1 as president of our new platform. He is highly respected in the industry, and his 35 years of automotive experience will bring valuable insight to our company."
The Sacramento-area dealerships, located in Folsom, are comprised of Toyota/Scion and Kia franchises. The San Diego dealerships consist of Dodge, Chrysler, Jeep, Kia, Subaru, Hyundai and Isuzu franchises, for a total of nine franchises under the platform.
Group 1 also announced that it recently acquired Pontiac and GMC franchises to augment the Maxwell Automotive Group platform in Central Texas. The franchises will operate from a newly developed dealership in Austin, Texas, and are expected to generate approximately $55 million in annualized revenues. "This is a natural addition to one of our outstanding platforms and gives the Maxwell Group 11 franchises," stated Hollingsworth.
Total consideration paid for completing both transactions was approximately $51.1 million in cash, net of cash received, and 306,321 shares of Group 1 common stock.
Acquisition Update
The company continues to seek strategic acquisition candidates to expand its geographic and brand diversity with a target of acquiring franchises with $1 billion of expected aggregate annual revenues in 2004. Year to date, Group 1 has added 16 franchises with annual revenues of approximately $690 million. The aggregate consideration paid in completing these acquisitions was approximately $94.5 million in cash, net of cash received, and 360,693 shares of Group 1 common stock.
"We have acquired more than two-thirds of this year's $1 billion target while maintaining our disciplined approach to acquisitions and focus on returns," stated Hollingsworth.
About Group 1 Automotive, Inc.
Group 1 currently owns 88 automotive dealerships comprised of 134 franchises, 30 brands, and 31 collision service centers located in California, Colorado, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New Mexico, Oklahoma and Texas. Through its dealerships and Internet sites, the company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.
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