Recently, Group 1 Automotive GPI announced that that it has acquired a new Audi dealership – Prestige Audi – in North Miami Beach, FL. The dealership is one of the top-ten Audi dealerships selling new vehicles in the U.S.
The Prestige Audi dealership is expected to generate $160 million in annual revenues. Now Group 1 Automotive has nine Audi dealerships across Florida, Texas, South Carolina, Massachusetts and the UK.
Group 1 Automotive regularly acquires dealerships and franchises to expand its business. In 2012 and 2013, the company had acquired 16 and 38 franchises, respectively. In 2014, the company acquired 19 franchises with expected annual revenues of $910 million. The company also disposed off 12 franchises that generated trailing 12-month revenues of $450 million in 2014.
In Mar 2015, the company acquired an Audi dealership located in Euless, TX in the Dallas-Fort Worth (DFW) metropolitan area. This dealership, which will operate as DFW Audi, is expected to boost annual revenues by $80 million. Regular acquisitions will help boost the company’s sales.
Group 1 Automotive is one of the leading automotive retailers in the world. As of Apr 2, 2015, the company operated 152 automotive dealerships, 197 franchises and 38 collision centers in the U.S, the UK and Brazil, offering 32 brands of automobiles.
Currently, Group 1 Automotive carries a Zacks Rank #2 (Buy). Other favorably-placed automobile stocks include Asbury Automotive Group, Inc. ABG, AutoNation Inc. AN and Lithia Motors Inc. LAD. While Asbury Automotive sports a Zacks Rank #1 (Strong Buy), both AutoNation and Lithia Motors carry a Zacks Rank #2 (Buy).
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