Group 1 Automotive, Inc. [NYSE: GPI] has declared that it has inked an acquisition agreement with Prime Automotive Group. As per the agreement, GPI will purchase all the assets, including real estate, of Prime Automotive Group. Prime Automotive Group is based in Westwood, Massachusetts.
Group 1 has executed $420 million of acquired revenues, and with this recommended buying, total acquired revenues are anticipated to be at least $2.25 billion at the expected closing date in late November. It has been disclosed that with the acquisition of the Prime dealerships, the total U.S. dealership of GPI count would rose to 147, which includes 46 locations in the Northeast, and 218 locations worldwide.
Furthermore, the corresponding Prime dealerships created $1.8 billion in annual revenues and retailed over 52,000 new and used vehicles in 2020. It has been anticipated that after the execution of the deal, the unified brand mix of Group 1 is likely to be nearly 43% luxury, 36% non-luxury import, and 21% non-luxury domestic.
In addition to this, Group 1 has successfully worked in the Northeastern U.S. for many years. GPI is delighted to have this chance to utilize its current cost structure and to further expand its U.S. footprint. The acquisition of Prime Automotive allows the firm to expand its reach of AcceleRide.