Group 1 Automotive Expands by Acquiring Three Luxury Brand Dealerships in Florida and Texas
Group 1 Automotive, Inc. (NYSE:GPI) has revealed plans to purchase three luxury brand shops in Florida and Texas: Mercedes-Benz, Acura, and Lexus. The acquisition is projected to bring in $330 million annually.
A line of new and used cars in a large auto dealership's showroom.
Group 1 Automotive, Inc. (NYSE:GPI) now has three dealerships in Southwest Florida because of the acquisition of the Lexus and Acura stores in Fort Myers, and it now has eight dealerships in the Austin area because of the purchase of Mercedes-Benz of South Austin. Following the completion of $3.9 billion in revenue acquisitions in 2024, the corporation now forecasts generating $430 million in acquired revenue for 2025. According to CEO Daryl Kenningham, the brands are "exceptional additions" to the firm’s portfolio, which currently consists of 263 dealerships in the United States and the United Kingdom.
Group 1 Automotive, Inc. (NYSE:GPI) also reported repurchasing 401,649 shares for $167.3 million at an average price of $416.62 per share so far this year, which furthers the company's commitment to capital returns.
The purchases support the company’s plan to expand its business in "cluster" markets with rapid development. Both Austin and Fort Myers, which are seeing fast economic and demographic growth, offer excellent prospects for high-margin luxury automobile sales. Group 1 Automotive, Inc. (NYSE:GPI)'s dual-track strategy of expansion through M&A and shareholder value through buybacks is supported by this action.
The business has 335 franchisees and 39 collision centers in the United States and the United Kingdom, selling 35 automotive brands. It maintains shareholder returns through aggressive repurchase programs while seeking market expansion with high free cash flow.
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