Group 1 completes sale of Brazilian operations
Group 1 Automotive Inc. has accomplished the sale of its Brazilian operations.
The Houston-based dealership group said Tuesday that its subsidiary GPI SA LLC closed on the share buy settlement transaction with Authentic Holdings S.A. of Brazil.
Group 1 mentioned Authentic Holdings purchased fairness pursuits of UAB from Group 1 for 510 million in Brazilian reals, or about $94.5 million. UAB had operated 16 dealerships on the finish of 2021 that represented BMW, Honda, Land Rover and Toyota and produced about 1.7 billion Brazilian reals, or about $315.1 million, in annual income.
Group 1 CEO Earl Hesterberg has mentioned that the general public auto retailer faced difficulties in rising the Brazil operations.
“As introduced final yr, our strategic resolution to exit the Brazilian market and redeploy capital to different progress alternatives is in the most effective curiosity of our shareholders,” Hesterberg mentioned in an announcement Tuesday. “We glance to proceed progress through acquisitions in each the U.S. and U.Okay. markets, whereas additionally returning capital to our shareholders.”
Group 1 ranks No. 4 on Automotive Information‘ checklist of the highest 150 dealership teams within the U.S., with retail gross sales of 146,072 new automobiles in 2021. It continues to function 201 dealerships within the U.S. and United Kingdom.