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8-K - LIVE FILING - GROUP 1 AUTOMOTIVE INC | htm_53077.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Group 1 Automotive Acquires Large U.K. Dealer Group
Also Announces Divestiture of 3 U.S. Dealerships & Names Senior Management Appointments
HOUSTON, February 4, 2016 Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, today announced that it acquired the Spire Automotive Group which consists of 12 dealerships operating in the greater London metropolitan market. Additionally, the Company announced the divestiture of three U.S. dealerships and made several senior management appointments.
U.K. Acquisition
The Company acquired the Spire Automotive Group, which consists of twelve dealerships operating
primarily in north and northwest London. The group includes four Audi dealerships, three BMW/MINI
dealerships with a BMW Aftersales centre, two Seat dealerships, one Skoda dealership, one
Volkswagen commercial vehicle dealership, and one Jaguar dealership. These stores, which will
continue to operate under the Spire dealership brand name, are expected to generate approximately
$575 million in annualized revenues.
We are pleased to expand our relationship with BMW and the Volkswagen Group in the U.K. and to expand our relationship with Jaguar Land Rover from Brazil to the U.K. We are also delighted to further leverage our scale and strong operating management team in the U.K., said Earl J. Hesterberg, Group 1s president and chief executive officer.
The Companys U.K. operations are expected to generate approximately $1.8 billion in estimated annual revenues with the addition of these stores. This acquisition broadens the Companys U.K. footprint to 29 dealerships, which includes existing BMW/MINI, Audi and Ford operations.
U.S. Dispositions
In the U.S., the Company divested three dealerships, which included Mercedes-Benz and Volkswagen of
Freehold, New Jersey, and Ira Toyota of Milford, Massachusetts. In total, these dealerships
generated approximately $160 million in trailing-twelve-month revenues. The disposals are
consistent with Group 1s portfolio management strategy.
We continually evaluate our portfolio of dealerships relative to required future capital expenditures and current levels of return on investment and move to dispose of assets that do not offer appropriate returns on invested capital, said Mr. Hesterberg.
Senior Management Appointments
As previously released, after serving 16 years with the Company, Brooks OHara, vice president of
human resources, has announced his retirement effective April 1, 2016. In conjunction with this
transition, the Company implemented the following personnel changes effective, February 1, 2016:
Frank Grese Jr., is appointed senior vice president of human resources, training, and
operations support. Previously, Mr. Grese served as Group 1s regional vice president of the
west region since 2006.
Daryl Kenningham is appointed as the new regional vice president of the west region. Mr.
Kenningham served as the regional vice president of the east region since joining the Company
in 2011.
David Fesmire is appointed as the new regional vice president of the east region. Previously,
Mr. Fesmire served as market director of the Houston/Beaumont and Gulf Coast markets.
Messrs. Grese Jr., Kenningham, and Fesmire will report directly to Earl Hesterberg, Group 1s president and chief executive officer.
About Group 1 Automotive, Inc.
Group 1 owns and operates 162 automotive dealerships, 212 franchises, and 37 collision
centers in the United States, the United Kingdom and Brazil that offer 34 brands of
automobiles. Through its dealerships, the Company sells new and used cars and light trucks;
arranges related vehicle financing; sells service contracts; provides automotive maintenance and
repair services; and sells vehicle parts.
Group 1 Automotive can be reached on the Internet at www.group1auto.com.
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, which are statements related to future, not past, events
and are based on our current expectations and assumptions regarding our business, the economy and
other future conditions. In this context, the forward-looking statements often include statements
regarding our goals, plans, projections and guidance regarding our financial position, results of
operations, market position, pending and potential future acquisitions and business strategy, and
often contain words such as expects, anticipates, intends, plans, believes, seeks,
should, foresee, may or will and similar expressions. While management believes that these
forward-looking statements are reasonable as and when made, there can be no assurance that future
developments affecting us will be those that we anticipate. Any such forward-looking statements are
not assurances of future performance and involve risks and uncertainties that may cause actual
results to differ materially from those set forth in the statements. These risks and uncertainties
include, among other things, (a) general economic and business conditions, (b) the level of
manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an
inventory of desirable new and used vehicles, (e) our relationship with our automobile
manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of
financing and the availability of credit for consumers, (g) our ability to complete acquisitions
and dispositions and the risks associated therewith, (h) foreign exchange controls and currency
fluctuations, and (i) our ability to retain key personnel. For additional information regarding
known material factors that could cause our actual results to differ from our projected results,
please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof. We undertake no obligation to
publicly update or revise any forward-looking statements after the date they are made, whether as a
result of new information, future events or otherwise.
SOURCE: Group 1 Automotive, Inc.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
V.P. Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com