Group 1 Automotive Inc. is expanding its operations overseas by buying three BMW/Mini dealerships in the United Kingdom.
The public dealership group said today that it expects its purchase of Chandlers Garage Holdings Ltd. to provide Group 1 about $180 million in annual revenues. The price was not disclosed.
The acquisition makes Group 1, of Houston, the second U.S. public auto retailer with foreign operations. UnitedAuto Group Inc., of suburban Detroit, owns overseas dealerships.
The dealerships bought by Group 1 are in the southeast England communities of Brighton, Worthing and Hailsham. They will keep the Chandlers brand name and current management.
Group 1 CEO Earl Hesterberg said BMW and Mini have increased their share of the United Kingdom luxury market segment to nearly 25 percent in the past few years. BMW Group operates both brands.
"Given the pace of consolidation in the U.K. automotive retailing environment, we believe this is an opportune time to diversify our business and open new avenues for growth," Hesterberg said in a statement.
Group 1 ranks No. 4 on this year's Automotive News list of the 125 largest U.S. public dealership groups. Group 1's 105 dealerships sold 129,198 new vehicles at retail and 67,868 used vehicles in 2006. It reported $5.75 billion in group revenues last year.
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