HOUSTON - Group 1 Automotive, Inc. (NYSE: NYSE:GPI), a Fortune 300 international automotive retailer, has announced the acquisition of two Lexus dealerships in Orange County, California. The purchase of Newport Lexus and Tustin Lexus is expected to contribute $350 million to the company's annual revenues.
This acquisition raises Group 1's total acquired revenues for the year to $850 million, following a previous year's addition of $1.1 billion.
The company also reported its share repurchase activities, having bought back 174,964 shares at an average price of $264.88, amounting to a total expenditure of $46.3 million. As of today, Group 1 has $97.0 million remaining under its current share repurchase authorization.
Daryl Kenningham, Group 1's President and CEO, expressed enthusiasm about the expansion in Southern California, citing the company's strong relationship with Lexus and prior experience in the market as advantageous for this acquisition.
He emphasized the company's strategy of growing through larger dealership acquisitions while divesting smaller, less profitable ones, and the intent to execute share repurchases when the stock is attractively valued.
The repurchases are set to be conducted as market conditions, legal requirements, and corporate considerations allow, either in the open market or through privately negotiated transactions. They will be funded by cash from operations, with repurchased shares held in treasury.
Group 1 Automotive operates 200 dealerships, 262 franchises, and 43 collision centers in the U.S. and U.K., selling new and used cars, arranging vehicle financing, selling service and insurance contracts, and providing automotive maintenance and repair services.
The information provided in this article is based on a press release statement from Group 1 Automotive, Inc.
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