Group 1 sells Hyundai dealership; Ken Garff Automotive buys Subaru store

Three dealership groups, including one of the country's largest privately owned auto retailers and a Canadian firm expanding in the U.S., bought dealerships in May and June transactions.

Here's a look at the deals involving import and domestic brand dealerships in Texas, Utah and Tennessee. Two transactions involved retailers ranked on Automotive News' top 150 dealership groups list.

Group 1 Automotive divestiture in Texas

Growing Canadian retailer Steele Auto Group, of Dartmouth, Nova Scotia, expanded its U.S. footprint in Texas with the acquisition of a Hyundai store from auto retail giant Group 1 Automotive Inc.

Steele Auto bought Sterling McCall Hyundai South Loop in Houston from Group 1 on June 22, according to Peter Porteous, vice president of business development at Steele Auto.

The dealership was renamed Steele South Loop Hyundai.

"We are thrilled to be growing our presence in the U.S. and Texas," Steele Auto President Kim Day said in a statement. "Sterling McCall Hyundai of South Loop represents our first acquisition in this strong Texas market and we were very pleased to work with Group 1 Automotive on the transaction."

Haig Partners, a buy-sell firm in Fort Lauderdale, Fla., represented Group 1 in the sale.

The Hyundai store is Steele Auto's sixth U.S. dealership, all of which are in Texas.

Steele Auto entered the U.S. in 2020, buying a Chevrolet-Buick-GMC dealership. Its growth has continued since. In February, Steele Auto bought two Hyundai dealerships, one south of Austin and one located between Austin and San Antonio.

Group 1's divestiture follows its April purchase of a Toyota store in New Mexico from Asbury Automotive Group Inc. and the March purchase of Charles Maund Toyota in Austin. In February, Group 1 sold Honda and Toyota dealerships in Massachusetts to Automotive Management Services Inc., owned by Terry Taylor.

Group 1, of Houston, ranks No. 4 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 146,072 new vehicles in 2021.

Ken Garff Automotive adds Subaru dealership, oldest in the nation

Expanding Ken Garff Automotive Group, a privately owned retailer in Salt Lake City, bolstered its Utah presence with the acquisition this month of a Subaru dealership, a new brand for the group.

Ken Garff Automotive on June 21 bought Nate Wade Subaru in Salt Lake City from longtime owner Kirk Schneider. The dealership is keeping the Nate Wade name, noting that it is a Ken Garff retailer.

Schneider, who had just the one store, is staying on as Ken Garff vice president of partner relations, the company said in a blog post. He will continue to serve on the boards of the New Car Dealers of Utah and the Utah Motor Vehicle Franchise Advisory Board, among others. Schneider also represents Utah on the board of directors of the National Automobile Dealers Association.

"There's no one we'd rather join than Ken Garff," Schneider said in a statement, adding his values match that of Ken Garff Automotive.

Schneider, who is also a past chairman of the Subaru National Dealer Advisory Board, had owned the dealership since 1995, when he bought it from his father-in-law, Nate Wade. The dealership opened in 1969 and is the oldest Subaru retailer in Subaru of America's network, the company confirmed to Automotive News. Subaru of America was incorporated in 1968.

"We are honored to welcome Nate Wade Subaru into the Ken Garff family," John Garff, CEO of Ken Garff Enterprises, parent company of Ken Garff Automotive, said in a statement. "Kirk Schneider's vision has made Nate Wade Subaru an outstanding retailer that is well respected in the community and aligns perfectly with our brand and commitment to Utah."

The acquisition follows Ken Garff Automotive's entrance into Colorado and Wyoming when it bought five dealerships in September.

Ken Garff Automotive ranks No. 9 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 58,787 new vehicles in 2021.

Joe Ozog of Ozog Consulting Group in Scottsdale, Ariz., represented Schneider in the transaction.

Geaux Automotive expands in Tennessee

Geaux Automotive Group purchased Donnie Hatcher Chevrolet-Buick-GMC in Brownsville, Tenn., according to Courtney Bernhard, a broker who handled the sale.

Geaux Automotive Group, of LaPlace, La., purchased the dealership May 16 from Donnie Hatcher and renamed it Express Chevrolet-Buick-GMC.

The acquisition marks the Geaux group's second dealership in Tennessee, its third franchised dealership and first Buick and GMC franchises. Geaux Automotive purchased Bob Johnston Chevrolet — now known as Express Chevrolet — in Covington, Tenn., in October.

It also operates Geaux Chevrolet in LaPlace plus a used-vehicle dealership in Baton Rouge, La.

Hatcher had operated the Brownsville store for nearly four decades, said Bernhard, of Performance Brokerage Services, a buy-sell firm in Irvine, Calif. He and George Chaconas from the firm handled the sale.

Hatcher had been working in dealerships for nearly 50 years, Bernhard said.

"Donnie was looking at retirement. He's at that point where he's been at the dealership for 36 years and just decided that there was no better time than now to sell," Bernhard told Automotive News.