US retail giant Group 1 Automotive remains on the acquisition trail following its £346 million deal to acquire Inchcape’s dealerships in the UK.
Announcing its financial results for the third quarter, Daryl Kenningham, Group 1 president and chief executive officer said: “We continue to grow revenues through acquisitions. During the quarter, we executed strategic UK transactions which added 58 dealerships.
“We are excited to expand our operations across the broader UK with great brands and will continue to explore growth-oriented opportunities.”
The addition of Inchcape’s 54 sites in April took Group 1 Automotive UK’s dealership portfolio up to 109 outlets, and its total annual revenues of more than £4 billion which meant that, at the time, it overtook Marshall Motor Group to enter the top 5 of the AM100.
After US-based Group 1 bought its first UK businesses in 2007 at the south of England, it steadily expanded northwards into East Anglia and the Home Counties and this acquisition helped extend its territory into Wales, the Midlands and the North West of England.
In July, Group 1 then went on to acquire four Mercedes-Benz dealerships that are expected to contribute $105 million in annual revenue, with new car sales recorded as net revenue under the agency model.
Most recently, in October, Group 1 acquired a BMW/MINI dealership in the UK, anticipated to add around $125 million in annual revenue.
“Together, these acquisitions have positioned Group 1 for robust growth in the UK, with year-to-date transactions expected to bring in approximately $3.9 billion in annual revenue,” the business stated.
For the quarter, Group 1 reported total revenues of $5.2 billion, marking an 11.0% increase from $4.7 billion in the third quarter of 2023.
“We remain focused on quickly and efficiently integrating our acquisitions into our existing operations to drive incremental value creation for our shareholders,” Kenningham added, underlining Group 1’s growth-driven acquisition strategy as it expands its reach in the UK market.
