Group 1 Automotive’s U.K. Acquisition Expected to Yield $2.7 Billion

29 Aug, 2024

Group 1 Automotive’s U.K. Acquisition Expected to Yield $2.7 Billion

Group 1 Automotive, a Fortune 250 automotive retailer, has significantly broadened its U.K. presence by acquiring Inchcape Retail’s (IR) automotive operations. This strategic move adds 54 dealership locations to Group 1’s portfolio, projected to generate $2.7 billion in annual revenues. As a result, the company’s year-to-date total acquired revenues for 2024 will reach $3.8 billion.

Daryl Kenningham, President and CEO of Group 1, expressed enthusiasm about the acquisition, highlighting the opportunity to enter new markets across England and expand brand offerings. The newly acquired dealerships are located in key areas such as the Midlands, North West England, and Wales, featuring prestigious brands like Audi, BMW/MINI, Jaguar Land Rover, Lexus, Mercedes-Benz/smart, Porsche, Toyota, Volkswagen, and Volkswagen Commercial Vehicles.

Daniel McHenry, Senior Vice President and CFO of Group 1, emphasized that the acquisition aligns with the company’s capital allocation strategy. He praised Inchcape Retail’s 50-year reputation and noted that this expansion will enhance scale and value for shareholders. The integration of these dealerships is expected to provide significant growth opportunities and strengthen Group 1’s position in the U.K. automotive market.