8:19 am, September 5, 2022
Motor trade giant Group 1 Automotive has acquired Essex-based Fairfield BMW.
The sale bolsters Group 1’s 70-plus-site UK business and adds another showroom to its BMW representation, which includes numerous sites under the Barons and Chandlers names.
The deal likely includes Fairfield Mini, which sits next door to the Leigh-on-Sea-based business, but it’s unclear at this stage.
Group 1 chief executive Earl J Hesterberg said: ‘We are extremely pleased to further expand our operations in the UK and to increase our BMW/Mini footprint to 43 franchises in the US and UK.
‘Our strong relationship with BMW and our experience in this market area make this an ideal addition to our growing UK business.’
Fairfield BMW owner Mike Styles said on LinkedIn: ‘Today is an emotional day for me, as after owning Fairfield Motor Group for 34 years and working there for almost 40 years, I’ve made the difficult decision to hang up my boots.
‘I will be handing the reins over to Group 1 Automotive, who I believe as a Fortune 500 company with an excellent record will take great care of my staff and Fairfield will go on to have a successful future.’
He added: ‘Thank you for all of the hard work and commitment to everyone who has worked for and with Fairfield over the years – without so many of you I wouldn’t be where I am now.
‘There’s too many people to mention, but you know who you are and I’ll be having a celebratory drink or two with you in the near future.
‘I have had a privileged life belonging to a special club called BMW UK.
‘I’ve been lucky enough to travel the world to more places than I can remember.
‘I’ve made friends with some of the most fantastic people from BMW UK and the BMW network. Some have become very close friends for life.
‘Those who know me well will know I’m of course not capable of totally retiring, so this is by no means the end.
‘I’ve got lots of exciting new projects ahead of me. But it will be nice to have some well-deserved time with my family.’
The Fairfield acquisition is expected to generate approximately £69.5m revenue a year. It also increases Group 1’s UK operations to 56 dealerships with 79 franchises.
Group 1 Automotive’s purchase of Fairfield follows Sytner’s acquisition of Stevenage-based Specialist Cars in April, which saw three BMW and Mini dealerships join the major dealer group.
Chartered accountants UHY Hacker Young – which didn’t advise on the Fairfield deal – told Car Dealer the buying-up of a smaller BMW dealer by a major dealer group shouldn’t come as a revelation.
‘It doesn’t surprise me there is more consolidation within the BMW network after the Specialist Cars transaction a couple of months ago and now Fairfield,’ said David Kendrick, automotive partner at UHY Hacker Young.
‘With contract renewals and agency agreements coming around in 2023, dealers may feel it’s an opportune time to look at succession planning.’
Fairfield began trading in 1967, initially as a Lotus dealer, before becoming exclusively a BMW retailer in 1973.
Its most recent accounts – for the year ended December 31, 2020 – via Companies House show Fairfield Ltd and its subsidiaries made a pre-tax profit of £808,891 in 2020 versus a £1.834m profit the year before.
Turnover fell from £68.2m to £53.8m.
Group 1 Automotive is based in the United States and listed on the US Stock Exchange. Its UK division was ranked in ninth place in the Car Dealer Top 100 list last year, with an EBITDA profit of £36.1m in 2020.
Image: Google Maps
