Group 1 Automotive, one of the nation’s largest and top-selling automotive retailers, announced the acquisition of Newport Lexus and Tustin Lexus from Wilson Automotive. The two high-performing Lexus dealerships are in Orange County, California. Group 1 expects the dealerships to make $350 million in revenue each year. This would bring the 2024 year-to-date acquired revenues to $850 million.
Group 1’s President and CEO Daryl Kenningham stated, “We are thrilled to expand our Southern California platform with this exceptional luxury brand. Our strong relationship with Lexus and experience in this market area make this a tremendous addition for Group 1.
“The transaction highlights our commitment to strategic portfolio optimization with growth through larger dealership acquisitions while disposing of smaller, less profitable stores. We also intend to opportunistically execute share repurchases when our stock represents an attractive value,” he added.
Group 1 owns and runs 200 car dealerships, 262 franchises, and 43 collision centers in the U.S. and the U.K. The dealerships sell 35 car brands.
Earlier this month, Group 1 expanded its U.S. portfolio in the greater Baltimore/Washington D.C. area by acquiring RRR Automotive Group. The deal included new vehicle dealerships for Toyota, Honda, Hyundai, and Kia. It also includes one Toyota Certified pre-owned center and three collision centers. The group also has the two highest-volume Honda dealerships in Maryland. The dealerships are expected to generate over $500 million in annual revenues.
The company also updated its year-to-date share repurchase activity. It bought 174,964 shares of common stock at an average price of $264.88, totaling $46.3 million.
