Group 1 Automotive Inc., in what would be one of largest dealership transactions in history and the second megadeal of the year, will expand its U.S. store count by a quarter and significantly increase its presence in the Northeast upon acquiring Prime Automotive Group, planned by late November.
The deal to buy the troubled Prime is Group 1's largest transaction to date, and it would accelerate the consolidation among dealership owners that's been a hallmark of the buy-sell market in 2021.
Publicly held Group 1 of Houston, the nation's fourth-largest dealership group, said last week that it had signed an agreement to buy 30 dealerships, three collision centers and real estate for $880 million from Prime, one of the largest privately owned groups in the country. The deal gives Group 1, which has a heavy concentration in Texas, increased geographic diversification and an additional base to build out AcceleRide, its digital retailing tool.