HOUSTON, Oct. 4, 2021 /PRNewswire/ -- Group 1
Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"
or the "Buyer"), an international, Fortune 500 automotive
retailer with 190 dealerships located in the U.S., U.K., and
Brazil, today announced the
acquisition of Classic Chrysler Dodge Jeep Ram of Denton and Classic Mazda of Denton within the greater Dallas-Fort Worth metro area of Texas.
These two stores are expected to generate approximately
$150 million in annualized
revenues.
"We are excited to expand our presence in the fast-growing
Dallas-Fort Worth metro market
with these strong brands," said Daryl
Kenningham, President of U.S. and Brazilian Operations for
Group 1 Automotive.
Group 1 currently operates 10 dealerships representing 10 brands
in the Dallas-Fort Worth
market.
Year to date 2021, Group 1 has completed $570 million of acquired revenues. The
acquisition of these two stores brings Group 1's total U.S.
dealership count to 119. With the Company's previously
announced pending acquisition of Prime Automotive Group expected to
close in late November 2021, the
Company's total acquired revenues are expected to be at least
$2.4 billion at the anticipated
closing date, and Group 1's total dealership count would increase
to 220 locations globally, which would include 149 U.S.
locations.
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 190 automotive
dealerships, 247 franchises, and 48 collision
centers in the United
States, the United
Kingdom and Brazil that offer 33 brands of
automobiles. Through its dealerships, the Company sells new and
used cars and light trucks; arranges related vehicle financing;
sells service contracts; provides automotive maintenance and repair
services; and sells vehicle parts.
Investors please visit www.group1corp.com,
www.group1auto.com, www.group1collision.com, www.acceleride.com,
www.facebook.com/group1auto, and www.twitter.com/group1auto, where
Group 1 discloses additional information about the Company, its
business, and its results of operations.
FORWARD-LOOKING STATEMENTS
To the extent that statements in this press release are not
recitations of historical fact, such statements constitute
"forward-looking statements" as such term is defined in the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements in this press release may include statements relating to
goals, plans and expectations regarding the expected benefits of
the proposed transaction, management plans, objectives for future
operations, scale and performance, integration plans and expected
synergies therefrom, the timing of completion of the proposed
transaction, our financial position, results of operations, market
position, business strategy and expectations of our management with
respect to, among other things: changes in general economic and
business conditions, including the impact of COVID-19 on the
automotive industry in general, the automotive retail industry in
particular and our customers, suppliers, vendors and business
partners; our relationships with vehicle manufacturers; operating
cash flows and availability of capital; capital expenditures; the
amount of our indebtedness; the completion of pending and future
acquisitions and divestitures; future return targets; general
economic trends, including consumer confidence levels, interest
rates and fuel prices; and automotive retail industry
trends.
The following are some but not all of the factors that could
cause actual results or events to differ materially from those
anticipated, including: the occurrence of any event, change or
other circumstances that could give rise to the termination of the
purchase agreement; the risk that the necessary regulatory or
third-party approvals may not be obtained or may be obtained
subject to conditions that are not anticipated; the risk that the
proposed transaction will not be consummated in a timely manner;
risks that any of the closing conditions to the proposed
acquisition may not be satisfied or may not be satisfied in a
timely manner; risks related to disruption of management time from
ongoing business operations due to the proposed acquisition;
failure to realize the benefits expected from the proposed
acquisition; failure to promptly and effectively integrate the
acquisition; the effect of the announcement of the proposed
acquisition on their operating results and businesses and on the
ability of Group 1 and Prime Automotive Group to retain and hire
key personnel, maintain relationships with suppliers; our ability
to execute our business strategy; the annual rate of new vehicle
sales in the U.S.; our ability to generate sufficient cash flows;
our ability to improve our liquidity position; market factors and
the future economic environment, including consumer confidence,
interest rates, the price of oil and gasoline, the level of
manufacturer incentives and the availability of consumer credit;
the reputation and financial condition of vehicle manufacturers
whose brands we represent and our relationships with such
manufacturers, and their ability to design, manufacture, deliver
and market their vehicles successfully; significant disruptions in
the production and delivery of vehicles and parts for any reason,
including natural disasters, affecting the manufacturers whose
brand we sell; our ability to enter into, maintain or renew our
framework and dealership agreements on favorable terms; the
inability of our dealership operations to perform at expected
levels or achieve expected return targets; our ability to
successfully integrate recent and future acquisitions; changes in,
failure or inability to comply with, laws and regulations governing
the operation of automobile franchises, accounting standards, the
environment and taxation requirements; our ability to leverage
gains from our dealership portfolio; high levels of competition in
the automotive retailing industry which may create pricing
pressures on the products and services we offer; our ability to
execute our capital expenditure plans; our ability to comply with
our debt or lease covenants and obtain waivers for the covenants as
necessary; and any negative outcome from any future litigation.
These risks, uncertainties and other factors are disclosed in Group
1's Annual Report on Form 10-K, subsequent quarterly reports on
Form 10-Q and other periodic and current reports filed with the
Securities and Exchange Commission from time to time.
These forward-looking statements and such risks,
uncertainties and other factors speak only as of the date of this
press release. We expressly disclaim any obligation or undertaking
to disseminate any updates or revisions to any forward-looking
statement contained herein, whether as a result of new information,
future events or otherwise.
Investor contacts:
Sheila
Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete
DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services
and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
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SOURCE Group 1 Automotive, Inc.