Group 1 Automotive Inc. of Houston has agreed to acquire eight dealerships for about $59 million in cash and 750,000 shares of Group 1 common stock.
The dealerships, which are owned by four companies, have combined annual revenue of $445 million and will bring Group 1's annual revenue to more than $2.2 billion.
The transactions, which are expected to be complete in the second quarter, will give the publicly traded Group 1 chain 71 franchises and 16 collision service centers in Colorado, Florida, Georgia, New Mexico, Oklahoma and Texas.
The eight dealerships are: Gene Messer Automotive Group, a chain of five dealerships in Lubbock, Amarillo and Rockwall, Texas, that sell Cadillac, Jeep, Mitsubishi, Toyota and Volvo; Sunshine Pontiac-Buick-GMC in Albuquerque, N.M.; Tidwell Ford in Atlanta; and South Pointe Chevrolet in Tulsa, Okla.
Group 1 also has added the Cadillac, Pontiac and BMW franchises at Mike Smith Autoplex 2000 in Beaumont, Texas, and dropped that dealership's Lincoln and Mercury franchises.