Group 1 Automotive buys dealers in U.K., sells in U.S.
The company acquired the Spire Automotive Group, which consists of twelve dealerships operating primarily in north and northwest London. The group includes four Audi dealerships, three BMW/MINI dealerships with a BMW Aftersales centre, two Seat dealerships, one Skoda dealership, one Volkswagen commercial vehicle dealership, and one Jaguar dealership.
These stores, which will continue to operate under the Spire dealership brand name, are expected to generate approximately $575 million in annualized revenues.
The company's U.K. operations are expected to generate approximately $1.8 billion in estimated annual revenues with the addition of these stores. This acquisition broadens the company's U.K. footprint to 29 dealerships, which includes existing BMW/MINI, Audi and Ford operations.
Additionally, the company announced the divestiture of three U.S. dealerships and made several senior management appointments.
The Company divested three dealerships, which included Mercedes-Benz and Volkswagen of Freehold, New Jersey, and Ira Toyota of Milford, Massachusetts. In total, these dealerships generated approximately $160 million in trailing-twelve-month revenues.
The disposals are consistent with Group 1's portfolio management strategy. ■