Group 1 Automotive Inc Stock Price, News & Analysis

On November 17, 2021, Group 1 Automotive (NYSE: GPI) announced completing the acquisition of Prime Automotive Group, encompassing 27 dealerships and three collision centers. This acquisition is projected to enhance the company's revenue and customer base, with year-to-date acquisitions totaling $2.4 billion in annual revenues. Additionally, the board declared a 2.9% increase in quarterly cash dividend to $0.35 per share and raised the stock buyback program by $116.1 million, now totaling $200 million.

Group 1 Automotive (GPI) has signed a Share Purchase Agreement to sell its Brazilian subsidiary, UAB Motors Participações, to Original Holdings S.A. for BRL 510 million. UAB operates 17 dealerships, contributing 2.3% of Group 1’s total revenue with BRL 1.264 billion in annual sales. The transaction, pending manufacturer approval, is expected to close by Q2 2022. CEO Earl J. Hesterberg stated this move allows the company to redeploy capital towards more promising growth opportunities. Following this divestiture, Group 1’s total dealerships will decrease to 174 while acquiring 30 Prime dealerships soon.

Group 1 Automotive (GPI) achieved record net income for Q3 2021, reporting a net income per diluted share of $9.33, up 36.5% from $6.83 in Q3 2020. Adjusted net income per diluted share reached $9.62, a 38.0% increase year-over-year. Total revenues rose 15.4% to $3.5 billion with gross profit increasing 27.6% to $653.2 million. Vehicle margins remained strong, and the company anticipates continued demand into 2022. Group 1 is set to close on the acquisition of Prime Automotive Group, which will add significant annual revenues.

Group 1 Automotive, a Fortune 500 automotive retailer, announced the acquisition of Capital City Honda in Sacramento, California, projected to generate approximately $85 million in annualized revenue. This acquisition boosts Group 1's U.S. dealership count to 120 and adds to a total of $655 million in acquired revenues for 2021. With a pending acquisition of Prime Automotive Group, total expected acquired revenues could reach $2.5 billion, raising dealership locations worldwide to 221.

Group 1 Automotive (GPI) announced the release of its financial results for Q3 2021 on October 28, 2021, before market open. A conference call will follow at 10 a.m. ET to discuss the results, accessible via a live webcast on their website. Investors can participate by phone, and a replay will be available until November 4, 2021. The company operates 190 dealerships across the U.S., U.K., and Brazil, offering a range of automotive services, including vehicle sales and financing.

Group 1 Automotive, Inc. (NYSE: GPI) has announced the pricing of a $200 million private placement of its 4.000% senior unsecured notes due in 2028. The offering is set at an effective yield of approximately 3.957% and is expected to close on October 21, 2021. Funds will be used for the acquisition of Prime Automotive Group or general corporate purposes. These notes are additional to the $550 million issued earlier in August 2020. The notes will not be registered under the Securities Act, limiting their sale to qualified buyers.

Group 1 Automotive, Inc. (NYSE: GPI) announced on Oct. 6, 2021, its intention to offer an additional $200 million in senior unsecured notes due 2028, following a previous issuance of $550 million. The proceeds will fund part of the acquisition of Prime Automotive Group or general corporate purposes if the acquisition is not completed. The new notes will remain unregistered and will be offered only to qualified institutional buyers. Group 1 operates 190 dealerships and is a leader in the automotive retail sector.

Group 1 Automotive (GPI) announced the acquisition of Classic Chrysler Dodge Jeep Ram and Classic Mazda in Denton, Texas, expected to generate around $150 million in annual revenues. This acquisition increases Group 1's dealership count to 119 in the U.S. and adds to the $570 million in revenues acquired year-to-date. With a pending acquisition of Prime Automotive Group, total dealership locations may rise to 220, projecting total revenues of at least $2.4 billion upon completion.

Group 1 Automotive, Inc. (GPI) has announced its definitive agreement to acquire Prime Automotive Group's assets, including real estate, valued at substantial revenue potential. Prime's dealerships in the U.S. generated $1.8 billion in 2020 sales and sold over 52,000 vehicles. This acquisition will expand Group 1's dealership count to 147 in the U.S. and enhance its brand mix significantly, with an expected increased focus on luxury brands. The deal is projected to close in late November 2021.