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Group 1 Automotive hit the acquisition trail in the UK this month with the purchase of four Mercedes-Benz dealerships in Hertford from L&L Automotive.
The dealership locations in Bishop’s Stortford, Hemel Hempstead, Hertford and Stevenage are contiguous with several other dealerships currently owned and operated by Group 1 in the UK and are expected to sell more than 2,800 new and used vehicle units annually.
Group 1 said the acquisition is expected to generate $105m (£83m) in annual revenues with new cars sales recorded as net revenue under the agency model.
Group 1 in the UK is ranked seven in the Motor Trader Top 200 Dealer Groups with annual turnover of £2.24bn.
L&L is ranked 113 in the Top 200 with pre-agency annual turnover of £117.4m in the year to December 2022.
Group 1 chief executive officer Daryl Kenningham, said: “We are delighted to expand our relationship with Mercedes-Benz while growing our operations in the U.K.
“This brand is outstanding and our ability to add these dealerships to our portfolio is a very positive growth action and presents an opportunity to further drive profitable growth for our shareholders.”
Year to date 2024, Group 1 has completed $1.1bn of acquired revenues. With the pending Inchcape UK dealership acquisition, which is expected to close during the third quarter of 2024, total acquired revenues are expected to be approximately $3.8 billion at the time of closing.
“It is very unique for a Mercedes market area to come available and the first time one has transacted since agency was introduced in 2023. A strong group that will be a great addition for Group 1 who are on a serious expansion journey in the UK now with the Inchcape deal likely to complete imminently also,” said David Kendrick of UHY who represented the L&L.