Public auto retailer Group 1 Automotive Inc. said Monday that it has agreed to acquire Prime Automotive Group, one of the largest privately owned dealership groups in the U.S.
Group 1 said the $880 million purchase includes nearly all of Prime's assets, 30 stores, three collision centers and real estate. It said the platform of stores last year generated $1.8 billion in annual revenue and the stores sold more than 52,000 new and used vehicles.
The acquisition of Prime, based in suburban Boston, will significantly boost the store count for Group 1, particularly in the Northeast. A closing is slated for late November.
"We know Prime's markets well and the opportunities they represent," Daryl Kenningham, Group 1's president of U.S. and Brazilian operations, said in a statement. "We are also proud to welcome Prime Automotive's 1,800 employees as new teammates to the Group 1 family. The addition of Prime Automotive enables us to extend our reach of AcceleRide, Group 1's industry leading digital retailing process, to even more customers."
The Group 1-Prime transaction would be the second megadeal of the year for dealership buy-sells. In April, Lithia Motors Inc. bought Michigan's Suburban Collection, a group of 34 stores and 56 franchises.
Automotive News reported last month that the Prime group was up for sale and that a sale was likely to happen by the end of the year. A dealer told Automotive News last month that Jefferies Financial Group was working with Prime to market the platform.