HOUSTON, Nov. 17, 2021 /PRNewswire/ -- Group 1
Automotive, Inc. (NYSE: GPI), ("Group 1" or the
"Company"), an international, Fortune 500 automotive retailer
with 217 dealerships located in the U.S., U.K., and Brazil,
today announced an update on the acquisition of Prime Automotive
Group. Additionally, the Company announced its board of
directors increased the Company's quarterly cash dividend by 2.9%,
or $0.01 per share, and also
increased the Company's common stock share repurchase authorization
by $116.1 million to $200.0 million.
- Prime Automotive Group Acquisition Update
Through November 17, 2021,
the Company has completed the purchase of substantially all the
assets, including real estate, 27 Prime Automotive Group
dealerships, and three collision centers.
"We are pleased to add these great brands and new teammates to our
company," said Earl J. Hesterberg,
Group 1's President and Chief Executive Officer. "This action
will further leverage our cost structure, diversify our footprint,
and broaden our customer base."
Year-to-date 2021, Group 1 has completed transactions representing
$2.4 billion of acquired annual
revenues, growing the Company's portfolio by 57 franchises.
As previously announced, the Company anticipates the sale of the
operations in Brazil to occur
before the end of the second quarter of 2022.
- Share Repurchase Authorization Increase
The Company announced that its board of directors increased
the Company's common stock share repurchase authorization by
$116.1 million to $200.0 million. During October through
November 17, 2021, subsequent to the
third quarter 2021 earnings call, the Company repurchased 339,853
shares at an average price per common share of $194.86, for a total of $66.2 million. Year-to-date through
November 17, 2021, the Company has
repurchased 464,922 shares at an average price per common share of
$182.47, for a total of $84.8 million. Purchases may be made from
time to time, based on market conditions, legal requirements, and
other corporate considerations, in the open market or in privately
negotiated transactions. The Company expects that any
repurchase of shares will be funded by cash from operations.
Repurchased shares will be held in treasury.
- Quarterly Cash Dividend Increase
Group 1's board of directors also declared a cash dividend
of $0.35 per share for the third
quarter of 2021. The dividend represents an increase of 2.9%,
or $0.01 per share, from the second
quarter of 2021, and will be payable on December 15, 2021, to stockholders of record as
of December 1, 2021.
Hesterberg added, "Our current financial position enables us to
grow our business through acquisitions while also returning capital
to shareholders."
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 owns and operates 217 automotive dealerships, 287
franchises, and 52 collision centers in the
United States, the United
Kingdom and Brazil that offer 34 brands of
automobiles. Through its dealerships, the Company sells new and
used cars and light trucks; arranges related vehicle financing;
sells service contracts; provides automotive maintenance and repair
services; and sells vehicle parts.
Investors please visit www.group1corp.com,
www.group1auto.com, www.group1collision.com, www.acceleride.com,
www.facebook.com/group1auto, and www.twitter.com/group1auto, where
Group 1 discloses additional information about the Company, its
business, and its results of operations.
FORWARD-LOOKING STATEMENTS
To the extent that statements in this press release are not
recitations of historical fact, such statements constitute
"forward-looking statements" as such term is defined in the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements in this press release may include statements relating to
goals, plans and expectations regarding the expected benefits of
the proposed transaction, management plans, objectives for future
operations, scale and performance, integration plans and expected
synergies therefrom, the timing of completion of the proposed
transaction, our financial position, results of operations, market
position, business strategy and expectations of our management with
respect to, among other things: changes in general economic and
business conditions, including the impact of COVID-19 on the
automotive industry in general, the automotive retail industry in
particular and our customers, suppliers, vendors and business
partners; our relationships with vehicle manufacturers; operating
cash flows and availability of capital; capital expenditures; the
amount of our indebtedness; the completion of pending and future
acquisitions and divestitures; future return targets; general
economic trends, including consumer confidence levels, interest
rates and fuel prices; and automotive retail industry
trends.
The following are some but not all of the factors that could
cause actual results or events to differ materially from those
anticipated, including: the occurrence of any event, change or
other circumstances that could give rise to the termination of the
purchase agreement; the risk that the necessary regulatory or
third-party approvals may not be obtained or may be obtained
subject to conditions that are not anticipated; failure to realize
the benefits expected from the proposed acquisition; failure to
promptly and effectively integrate the acquisition; the annual rate
of new vehicle sales in the U.S.; our ability to generate
sufficient cash flows; our ability to improve our liquidity
position; market factors and the future economic environment,
including consumer confidence, interest rates, the price of oil and
gasoline, the level of manufacturer incentives and the availability
of consumer credit; the reputation and financial condition of
vehicle manufacturers whose brands we represent and our
relationships with such manufacturers, and their ability to design,
manufacture, deliver and market their vehicles successfully;
significant disruptions in the production and delivery of vehicles
and parts for any reason, including natural disasters, affecting
the manufacturers whose brand we sell; our ability to enter into,
maintain or renew our framework and dealership agreements on
favorable terms; the inability of our dealership operations to
perform at expected levels or achieve expected return targets; our
ability to successfully integrate recent and future acquisitions;
changes in, failure or inability to comply with, laws and
regulations governing the operation of automobile franchises,
accounting standards, the environment and taxation requirements;
our ability to leverage gains from our dealership portfolio; high
levels of competition in the automotive retailing industry which
may create pricing pressures on the products and services we offer;
our ability to execute our capital expenditure plans; our ability
to comply with our debt or lease covenants and obtain waivers for
the covenants as necessary; and any negative outcome from any
future litigation. These risks, uncertainties and other factors are
disclosed in Group 1's Annual Report on Form 10-K, subsequent
quarterly reports on Form 10-Q and other periodic and current
reports filed with the Securities and Exchange Commission from time
to time.
These forward-looking statements and such risks,
uncertainties and other factors speak only as of the date of this
press release. We expressly disclaim any obligation or undertaking
to disseminate any updates or revisions to any forward-looking
statement contained herein, whether as a result of new information,
future events or otherwise.
Investor contacts:
Sheila
Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete
DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services
and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
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SOURCE Group 1 Automotive, Inc.