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Monday, 13 September 2021 22:10

Group 1 to Buy Prime Automotive Group for $880M; LMP Announces Deal

Written by Auto Remarketing Staff

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Two of the nation’s publicly traded dealership groups announced respective acquisitions Sept. 13, including one with a price tag in the hundreds of millions of dollars.

Group 1 Automotive has entered a deal to buy Prime Automotive Group’s 30 dealerships and three collision centers in a deal that’s expected to be for $880 million.

 

LMP announced it entered a deal to buy five import-brand dealerships in Texas along with the associated real estate. LMP did not share the name of the stores or group, but noted the aggregate purchase price was roughly $62.5 million for goodwill and has an aggregate real estate purchase price of about $55 million.

 

As for the Group 1 purchase, Prime has 30 dealerships and three collision centers throughout the Mid-Atlantic and New England.

 

Its franchises include Acura, Airstream, Audi, BMW, Buick, Chrysler, Dodge, Ford, GMC, Honda, Jeep, Land Rover, Mazda, Mercedes-Benz, MINI, Porsche, RAM, Subaru, Toyota, Volkswagen and Volvo.

 

It is headquartered in Westwood, MA, and its stores pulled in $1.8 billion in revenues last year and retailed more than 52,000 vehicles.

 

“Group 1 has successfully operated in the Northeastern U.S. for many years. We are pleased to have this opportunity to leverage our existing cost structure and to further diversify our U.S. footprint,” Group 1 President and CEO Earl Hesterberg said in a news release.

 

Added Daryl Kenningham, Group 1’s president of U.S. and Brazilian operations: “We know Prime's markets well and the opportunities they represent. We are also proud to...


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