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Group 1 Automotive expands with key acquisitions expecting $500 million in revenues

EditorLina Guerrero
Published 02/12/2024, 06:33 PM
© Reuters.
GPI
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HOUSTON - Group 1 Automotive, Inc. (NYSE: NYSE:GPI), an international Fortune 300 automotive retailer, has expanded its U.S. operations with the acquisition of several dealerships in Baltimore/Washington DC area. The company's latest move includes Toyota (NYSE:TM), Honda (NYSE:HMC), Hyundai (OTC:HYMTF), and Kia new vehicle dealerships, a Toyota Certified pre-owned center, and three collision centers. This expansion is expected to generate over $500 million in annual revenues.

The company also announced a 4% increase in its 2024 annual dividend rate, rising to $1.88 per share from the previous year's $1.80 per share. Stockholders of record as of March 1, 2024, will receive a $0.47 dividend per share on March 15, 2024.

In line with its strategic focus on larger, higher-performing dealerships, Group 1 has also divested 10 franchises and a collision center in Beaumont, Texas during the first quarter of 2024. These adjustments reflect the company's ongoing efforts to optimize its portfolio for profitability and growth.

Daryl Kenningham, President and CEO of Group 1, expressed enthusiasm about the growth potential in the Washington, DC market, one of the country's largest automotive markets. He highlighted the company's intention to integrate the newly acquired businesses swiftly, leveraging Group 1's proven track record in operational and acquisition integration to drive profitable growth for stockholders.

Group 1 Automotive operates 198 dealerships, 262 franchises, and 43 collision centers in the United States and the United Kingdom, offering 35 automobile brands.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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