After failing to achieve what it felt was sufficient scale for its auto retail operations in Brazil, Group 1 Automotive Inc. has decided to divest its business there.
The Houston-based dealership group's subsidiary GPI SA LLC has entered into a share purchase agreement with Original Holdings S.A. of Brazil, with UAB Motors Participacoes Ltda., a wholly-owned subsidiary of Group 1, as an intervening party.
Original will buy equity interests of UAB from Group 1 for 510 million Brazilian reals in cash, or about $93 million. UAB operated 17 stores that generated about $230 million in annual revenue as of year-end 2020.
The transaction is expected to close by the end of the second quarter of 2022.