Group 1 Automotive has acquired three Basic Motors dealerships in Texas that the auto retail big expects will add $760 million in annual income.
The Houston-based dealership group on Monday bought Beck & Masten Buick-GMC North, Beck & Masten Buick-GMC South and Beck & Masten Buick-GMC Coastal Bend from the Beck & Masten group, in response to Ryan Kerrigan, managing director of Kerrigan Advisors, a dealership sell-side agency in Incline Village, Nev.
Kerrigan Advisors represented Beck & Masten house owners John Beck and James Masten within the sale.
The North and South shops are in Houston, whereas the Coastal Bend retailer in Robstown is a part of the Corpus Christi space. It wasn’t instantly clear if the dealership names will stay.
“GMC has excellent truck and SUV merchandise and matches completely into these necessary Texas truck markets,” Group 1 CEO Daryl Kenningham stated in an announcement. “Buick’s merchandise are poised to be leaders within the transition to car electrification. … The addition of those dealerships builds on our progress story at Group 1.”
Beck & Masten, of Houston, retailed greater than 11,700 automobiles in 2022, in response to Kerrigan Advisors.
“These are uniquely high-volume shops and Texas is only a actually sturdy market,” Ryan Kerrigan informed Automotive Information.
Group 1 stated the Houston dealerships “are among the many highest-volume dealerships of their model within the U.S.”
Stephens Inc. analyst Daniel Imbro, in a observe to traders Monday, stated the Texas dealership purchases gel with Group 1’s acquisition technique to maximise” high-volume, high-profit shops.”
“We anticipate GPI [Group 1] to stay lively within the M&A market as sellers’ multiples normalize,” Imbro wrote.
Companions Masten and Beck have labored collectively since 1971 and plan to retire, in response to Kerrigan Advisors.
Group 1 stated Monday’s acquisition brings its whole income added by means of dealership acquisitions this yr to $910 million.
The retailer on March 27 bought Estero Bay Chevrolet in Florida from Charles Winton and Pat Denson. That retailer is anticipated to generate $150 million in annual income.
In 2022, Group 1’s acquired dealerships had been anticipated to generate $940 million in annual income, with an anticipated $200 million coming from its December buy of Mercedes-Benz of Anaheim in California.
Group 1 ranks No. 4 on Automotive Information’ record of the highest 150 U.S. dealership teams based mostly in th U.S., promoting 154,714 new automobiles in 2022.