Hesterberg: "We have decided to dispose of several dealerships and redeploy the capital to operations offering a higher future rate of return."
Group 1 Automotive Inc. sold four dealerships during the past three weeks and will post a one-time net pretax gain of $8.3 million during the second quarter.
The dealerships sold, in three separate transactions, are: Miller Honda and Miller Toyota in Culver City, Calif.; World Ford in Stone Mountain, Ga.; and Messer Mazda in Amarillo, Texas. Group 1 also sold the Stone Mountain dealership’s real estate.
Together, the four stores generated $176.7 million in revenue during the past 12 months.
Group 1 CEO Earl Hesterberg said in a statement that the sales resulted from the retailer’s regular portfolio review focusing on required future capital expenditures and current levels of return on investment.
“Based on that type of analysis, we have decided to dispose of several dealerships and redeploy the capital to operations offering a higher future rate of return for our shareholders,” Hesterberg said. “We remain positive overall on the U.S. dealership environment and plan to pursue further expansion of our U.S. business in the near future.”
Group 1 ranks No. 4 on the Automotive News list of the top 125 U.S. dealership groups with total new-vehicle sales of 128,550 in 2012.