Group 1 (GPI) Buys Modern Classic Motors in South Carolina
Group 1 Automotive, Inc. GPI has acquired Modern Classic Motors in Hilton Head, SC. The buyout comprises three franchises, including Mercedes-Benz, Sprinter and Honda in Beaufort County, one of the swiftly expanding counties in South Carolina.
With this acquisition, Group 1 expanded its relationship with Mercedes-Benz to 17 franchises in the United States and United Kingdom. The company also expanded its partnership with Honda to 13 franchises in the United States.
The transaction is expected to add $140 million to GPI's annual revenues.
In February, the automotive retailer acquired Newport Lexus and Tustin Lexus. These stores are Lexus’s top-performing dealerships in Orange County, CA. The transaction is expected to add $350 million to the company’s annual revenues.
Apart from these acquisitions, Group 1 also acquired Toyota, Honda, Hyundai and Kia dealerships, one Toyota Certified pre-owned center and three collision centers in February. The acquisition underscores the company’s aims to expand its U.S. portfolio in the greater Baltimore/Washington DC market. This metropolitan area ranks as the sixth largest in the United States. The transaction includes Honda’s two highest-volume dealerships in the state of Maryland.
The acquisition is expected to add $500 million to the company’s annual revenues.
Year to date, Group 1 has added an estimated $1 billion in annual revenues. In 2023, it added estimated annual revenues of $1.1 billion.
Group 1 owns 202 dealerships, 265 franchises and 43 collision centers in the United States and United Kingdom so far.
Zacks Rank & Key Picks
GPI currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company MOD, Toyota Motor Corporation TM and Allison Transmission Holdings, Inc. ALSN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings per share (EPS) suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved 12 cents in the past 30 days.
The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved 86 cents and $1.01, respectively, in the past seven days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.
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