Group 1, Sonic Automotive acquire dealerships in single-store transactions

Group 1 Automotive Inc. and Sonic Automotive Inc., both with pending megadeal acquisitions, each bought a dealership this week.

Group 1 on Monday said it bought a Honda dealership in northern California. The fourth-largest new-vehicle retailer acquired Mel Rapton Honda in Sacramento from siblings Katina Rapton and Curtis Rapton, according to local media reports.

Mel Rapton Honda dates to 1982 when dealer Mel Rapton switched from selling Pontiacs to Hondas, according to the store's website. Mel Rapton died in 2009. Curtis and Katina are his children.

Cushman & Wakefield Dealership Capital Services advised the sellers in the Honda transaction.

Group 1 said the California store is expected to generate about $85 million in annual revenue. It was renamed Capital City Honda.

"We're extremely pleased to welcome the team at Capital City Honda to the Group 1 family," Daryl Kenningham, Group 1's president of U.S. and Brazil operations, said in a release. "We're looking forward to expanding our relationship with Honda and the local community in Sacramento."

Group 1 in October bought two dealerships in Denton, Texas. So far this year, Group 1 has purchased dealerships expected to generate $655 million in annual revenue. The pending acquisition of 30 dealerships from Prime Automotive Group, expected to close next month, will bring the Houston dealership group's acquired revenue to $2.5 billion.

With the Sacramento purchase, Group 1's U.S. location count is 120 dealerships. It ranks No. 4 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 140,221 new vehicles in 2020.

Sonic on Monday bought Bobby Ford Chrysler-Dodge-Jeep-Ram in Sealy, Texas, from Bobby Ford LLC. The store was renamed Momentum Chrysler-Dodge-Jeep-Ram of Sealy. Sealy is a western suburb of Houston.

Terms were not disclosed.

Bobby Ford Chrysler-Dodge-Jeep-Ram opened in December 2020, according to the dealership's Facebook page.

For Sonic, the acquisition marks a return to the domestic brands. A Sonic spokeswoman said the group previously had Chrysler-Dodge-Jeep-Ram brand stores, but sold all of them between 2008 and 2012.

The group's pending $700 million acquisition of RFJ Auto Partners Holdings Inc. also includes Stellantis stores. That deal is expected to close in December.

"The strength of the Bobby Ford team and the CDJR brands will jumpstart our brand expansion efforts, setting the stage for additional CDJR locations we plan to begin operating in the Northwest later this year," Sonic President Jeff Dyke said in a statement.

Sonic acquired a Colorado Audi-Volkswagen dealership in August and two other dealerships in Colorado in July. Sonic's July purchase of Subaru and Volkswagen dealerships were the group's first acquisitions since November 2014.

With the Texas acquisition, Sonic said it has 88 franchised dealerships, with 17 of those in Texas.

Sonic, of Charlotte, N.C., ranked No. 7 on the Automotive News list of the top 150 dealership groups based in the U.S., with retail sales of 93,281 new vehicles in 2020.