Group 1 Automotive, one of the nation’s largest auto retailing groups, announced today that it is expanding its U.S. portfolio in the greater Baltimore/Washington D.C. area, according to a press release. The acquisition of RRR Automotive Group includes 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.
RRR Automotive Group was founded by Dick Patterson and Robert Hisaoka in the 1990s. It is one of the most valuable import groups in the Mid-Atlantic. The group includes Toyota of Bowie, Kia of Bowie, Honda of Owings Mills, Honda of Greenbelt, College Park Hyundai, and Toyota Certified at Capital Plaza.
Group 1’s President and CEO Daryl Kenningham stated, “We are thrilled to grow our business in the greater Washington, DC area, one of the largest automotive markets in the country. These dealerships are some of the best brands in our portfolio and we are very proud to grow our relationship with Toyota, Honda, Kia, and Hyundai. As reflected in our history of successful integration of acquisitions, we work toward integrating these businesses into our company as quickly as possible.
The transaction expands Group 1’s regional presence and the non-luxury import brand market. The Washington metropolitan region is an import-dominant market with a market share of 72%. This is 24% higher than the U.S. average. RRR Automotive Group dominates the markets in which it operates. It has captured 48% of Bowie, College Park, Greenbelt, and Owings Mills’ import non-luxury sales since 2019. Additionally, the area is one of the nation’s most economically vibrant and fastest growing, with a population of 10 million.
Kerrigan Advisors, an automotive buy/sell firm, represented RRR Automotive Group in the sale of its five new car dealerships. This transaction underscores Kerrigan Advisors’ track record of selling the most valuable auto retailers nationwide. It marks the 50th franchise sale in the region completed by the firm since 2020.
“This transaction highlights the continued strength of the buy/sell market for top import franchises in economically vibrant markets. Despite an elevated interest rate environment and cooling industry profits, dealerships remain one of the most lucrative retail investments in the country,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors.
Group 1 owns and operates 198 automotive dealerships, 262 franchises, and 43 collision centers in the United States and the United Kingdom. They offer 35 brands of automobiles.
