Share
Group 1 of the US automotive sector has added its business in the United Kingdom with the acquisition of four Mercedes dealerships.
The company, which is in the process of completing the acquisition of Inchcape’s retail business, acquired the quartet of specialty broker organization L.
The showrooms, all in Hertfordshire, will continue to operate in a firm style after the deal closes, for an undisclosed amount.
The entrepreneurs say they are “delighted” with the new acquisitions and expect the plants to sell more than 2,800 new and used cars a year.
They forecast annual profits of around $105 million (£83 million) from the four new sites, at Bishop’s Stortford, Herford, Stevenage and Hemel Hempstead.
Daryl Kenningham, Group 1 Chief Executive, said: “We are very pleased to extend our relationship with Mercedes-Benz at the same time as we expand our operations in the UK.
“This logo is exceptional and our ability to add those concessions to our portfolio is a major expansion move and presents an opportunity to generate a more successful expansion for our shareholders. “
The deal comes three months after Group 1 agreed to the terms of a £346 million deal to buy Inchcape, after facing a tough festival from AutoNation.
Experts say the deal is about to close and Group 1 expects everything to be finalized before the end of the third quarter.
The American company has been operating in the United Kingdom since 2007, supplying 15 brands to 55 distributors, until the last agreement.
Ti
David Kendrick, CEO of UHY Hacker Young, said: “It is unique that Mercedes has market dominance and this is the first time a transaction has been completed since the agency’s arrival in 2023.
“This is an organisation that will be a wonderful addition to Group 1, which is ultimately on a serious adventure of expansion in the UK and the deal with Inchcape is expected to close imminently. “
Jack joined the car dealership team in 2021 as a copywriter. In the past he worked as a journalist for a national newspaper for the BNPS news agency. He has provided car news and reporting for a number of national publications, including The Sun, The Times. and The Daily Mirror.
The latest. . .
Verify. . .
Account Links. . .
Car Dealer Magazine