9:23 am, July 2, 2024
US automotive giant Group 1 has added to it UK operations with the acquisition of four Mercedes dealerships.
The firm, which is also close to finalising its takeover of Inchcape’s retail operations, has bought the quartet from specialist dealer group L&L Automotive.
The showrooms, all of which are located in Hertfordshire, will continue to operate under an agency model following the completion of the deal for an undisclosed fee.
Bosses say they are ‘delighted’ with the new acquisitions and are expecting the sites to sell more than 2,800 new and used vehicles every year.
They are also forecasting annual revenues of around $105m (£83m) from the four new sites, in Bishop’s Stortford, Herford, Stevenage and Hemel Hempstead.
Daryl Kenningham, Group 1’s chief executive officer, said: ‘We are delighted to expand our relationship with Mercedes-Benz while growing our operations in the UK.
‘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.’
The deal comes three months after Group 1 agreed terms on a £346m deal to buy Inchcape, after seeing off strong competition from the likes of AutoNation.
Insiders say the deal is now close to be finalised, with Group 1 expecting everything to be finalised before the end of the third quarter.
The American outfit has operated in the UK since 2007, representing 15 brands at 55 dealerships, prior to the latest deal.
L&L Automotive were advised in the sale by accountants, UHY Hacker Young, who have described the deal as ‘unique’.
David Kendrick, CEO of UHY Hacker Young said: ‘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.
‘This is 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.’
