Group 1 Automotive, a Fortune 300 automotive retail giant, has broadened its footprint in the lucrative Southern California market with the acquisition of Mercedes-Benz of Anaheim and its associated Sprinter franchises. Announced on December 1, 2022, this strategic move not only expands Group 1’s domestic operations but also deepens its established partnership with Mercedes-Benz, bringing their total Mercedes-Benz dealerships to 17 across the United States and the United Kingdom. For residents of Anaheim and surrounding areas seeking unparalleled Mercedes-Benz sales and service, this acquisition signals an exciting enhancement in the local automotive landscape.
Earl Hesterberg, President and CEO of Group 1 Automotive, expressed enthusiasm about the acquisition, stating, “We are thrilled to welcome Mercedes-Benz of Anaheim to the Group 1 Automotive family. This acquisition is a natural fit for us, allowing us to leverage our strong existing presence in Southern California and our robust relationship with the prestigious Mercedes-Benz brand. We believe Mercedes-Benz of Anaheim is a premier dealership and a valuable addition to our growing portfolio.”
This acquisition is projected to generate approximately $200 million in annual revenue, marking a significant contribution to Group 1 Automotive’s already impressive financial performance. In 2022 alone, Group 1 has strategically acquired dealerships representing an estimated $940 million in annual revenues, building upon the $2.5 billion in acquired revenues in 2021. This aggressive growth strategy underscores Group 1’s commitment to expansion and market dominance within the automotive retail sector.
Group 1 Automotive’s financial strategy extends beyond acquisitions. The company has actively managed its capital allocation, demonstrated by the repurchase of approximately 21% of its outstanding shares since November 2021. This balanced approach to growth and shareholder value underscores Group 1’s sound financial management and long-term vision.
About Group 1 Automotive: A Leader in Automotive Retail
Group 1 Automotive stands as a prominent international automotive retailer, operating 204 dealerships and 275 franchises across the United States and the United Kingdom. Their extensive network encompasses 47 collision centers and offers a diverse portfolio of 35 automotive brands. Group 1’s business model is comprehensive, spanning the sale of new and used cars and light trucks, facilitating vehicle financing, offering service and insurance contracts, providing expert automotive maintenance and repair services, and distributing genuine vehicle parts.
With a commitment to customer satisfaction and operational excellence, Group 1 Automotive provides a seamless omni-channel platform, ensuring customers can engage with their services conveniently, whether online or in person. For those interested in learning more about Group 1 Automotive, comprehensive information is readily available on their official websites: www.group1corp.com, www.group1auto.com, www.group1collision.com, and www.acceleride.com. Social media enthusiasts can also follow Group 1 Automotive on Facebook (www.facebook.com/group1auto) and Twitter (www.twitter.com/group1auto) for the latest updates and news.
Forward-Looking Statements and Important Disclaimers
It is important to note that this announcement contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are inherently based on current expectations, assumptions, and projections regarding future events and business conditions, and thus involve risks and uncertainties. While these statements reflect management’s current beliefs, actual outcomes may differ materially from those projected.
Factors that could influence these forward-looking statements include, but are not limited to, general economic conditions, manufacturer incentives, regulatory changes, vehicle inventory availability, manufacturer relationships, financing costs and credit availability, acquisition and disposition risks, currency fluctuations, the ongoing impacts of global events such as the COVID-19 pandemic and geopolitical conflicts, inflation and potential economic recession, liquidity maintenance, transaction consummation risks, and the successful integration of acquired businesses.
For a comprehensive understanding of potential risk factors, readers are encouraged to consult Group 1 Automotive’s filings with the Securities and Exchange Commission, including their Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are cautioned against placing undue reliance on these forward-looking statements, which are relevant only as of the date of this announcement. Group 1 Automotive undertakes no obligation to publicly update or revise any forward-looking statements in light of new information or future events.
For investor inquiries, please contact Jason Babbitt, Vice President, Treasurer, Group 1 Automotive, Inc., or for media inquiries, please contact Pete DeLongchamps, Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs, Group 1 Automotive, Inc., or Clint Woods, Pierpont Communications, Inc.
