Group 1 Automotive has acquired three General Motors dealerships in Texas that the auto retail giant expects will add $760 million in annual revenue.
The Houston-based dealership group on Monday purchased Beck & Masten Buick-GMC North, Beck & Masten Buick-GMC South and Beck & Masten Buick-GMC Coastal Bend from the Beck & Masten group, according to Ryan Kerrigan, managing director of Kerrigan Advisors, a dealership sell-side firm in Incline Village, Nev.
Kerrigan Advisors represented Beck & Masten owners John Beck and James Masten in the sale.
The North and South stores are in Houston, while the Coastal Bend store in Robstown is part of the Corpus Christi area. The dealership names will remain, according to Kerrigan Advisors.
"GMC has outstanding truck and SUV products and fits perfectly into these important Texas truck markets," Group 1 CEO Daryl Kenningham said in a statement. "Buick's products are poised to be leaders in the transition to vehicle electrification. ... The addition of these dealerships builds on our growth story at Group 1."
Beck & Masten, of Houston, retailed more than 11,700 vehicles in 2022, according to Kerrigan Advisors.
"These are uniquely high-volume stores and Texas is just a really strong market," Ryan Kerrigan told Automotive News.
Group 1 said the Houston dealerships "are among the highest-volume dealerships in their brand in the U.S."
Stephens Inc. analyst Daniel Imbro, in a note to investors Monday, said the Texas dealership purchases gel with Group 1's acquisition strategy to maximize" high-volume, high-profit stores."
"We expect GPI [Group 1] to remain active in the M&A market as sellers' multiples normalize," Imbro wrote.