Group 1 Automotive, a Fortune 300 international automotive retailer, has announced the acquisition of Mercedes-Benz and Sprinter franchises in Anaheim, California. This strategic move, finalized on December 1, 2022, not only broadens Group 1’s presence in the lucrative Southern California market but also strengthens its global partnership with Mercedes-Benz, bringing their total Mercedes-Benz dealerships to 17 across the US and UK. The acquisition of Mercedes-Benz of Anaheim is projected to generate approximately $200 million in annual revenue for Group 1 Automotive.
Earl Hesterberg, Group 1 Automotive’s Chief Executive Officer, expressed enthusiasm about the expansion. “We are delighted to welcome the Mercedes-Benz of Anaheim team into the Group 1 family. This acquisition perfectly aligns with our strategic growth plan, enhancing our operations in Southern California with the prestigious Mercedes-Benz brand. Our established relationship with Mercedes-Benz and our familiarity with the Southern California market make this dealership a valuable addition to our portfolio,” stated Hesterberg. This acquisition marks a significant expansion in a key market for luxury and commercial vehicles, particularly for the sought-after Mercedes-Benz Sprinter van.
The Anaheim acquisition is part of a larger growth trajectory for Group 1 Automotive. In 2022 alone, the company has acquired dealerships expected to generate $940 million in annual revenues, building on the $2.5 billion in acquired revenues in 2021. Alongside strategic acquisitions, Group 1 Automotive has maintained a balanced capital allocation strategy, demonstrated by the repurchase of roughly 21% of its outstanding shares since November 2021. This dual approach of expansion and shareholder value enhancement underscores Group 1’s robust financial management and strategic vision in the automotive retail sector.
About Group 1 Automotive, Inc.
Group 1 Automotive operates 204 automotive dealerships encompassing 275 franchises and 47 collision centers across the United States and the United Kingdom. Representing 35 distinct automobile brands, Group 1 offers a comprehensive range of automotive products and services. Through its extensive dealership network and omni-channel platform, the company is a leading retailer of new and used cars and light trucks. Furthermore, Group 1 facilitates vehicle financing arrangements, sells service and insurance contracts, provides expert automotive maintenance and repair services, and supplies genuine vehicle parts. For more information about Group 1 Automotive and its operations, please visit www.group1corp.com.
This acquisition of Mercedes-Benz of Anaheim is poised to be a significant contributor to Group 1 Automotive’s continued success. The demand for Mercedes-Benz vehicles, particularly the versatile Sprinter van popular among businesses and consumers alike in Anaheim and the wider Southern California region, presents a strong opportunity for growth and enhanced market share. This move further solidifies Group 1 Automotive’s position as a leading player in the automotive retail landscape, offering exceptional vehicles and services to a diverse customer base.
