Group 1 Automotive, one of the largest auto retailing groups in the U.S., announced that it has acquired RRR Automotive Group, a leading import group in the Mid-Atlantic region. The deal includes 13 new vehicle dealerships and three collision centers, and is expected to generate over $500 million in annual revenues.
RRR Automotive Group: A valuable import group
RRR Automotive Group was founded by Dick Patterson and Robert Hisaoka in the 1990s, and has grown to become one of the most valuable import groups in the Mid-Atlantic region. The group operates dealerships for Toyota, Honda, Hyundai, and Kia, as well as one Toyota Certified pre-owned center and three collision centers. The group also has the two highest-volume Honda dealerships in Maryland.
The group serves the greater Baltimore/Washington D.C. area, which is one of the largest and most economically vibrant automotive markets in the country. The area has a population of 10 million, and a market share of 72% for import non-luxury brands, which is 24% higher than the U.S. average. RRR Automotive Group dominates the markets in which it operates, capturing 48% of the import non-luxury sales in Bowie, College Park, Greenbelt, and Owings Mills since 2019.
Group 1 Automotive: A growing auto retailer
Group 1 Automotive is an international, Fortune 300 automotive retailer with 199 dealerships located in the U.S. and U.K. The company offers 35 brands of automobiles, and has a diversified portfolio of luxury, domestic, and import brands. The company also provides parts and service, finance and insurance, and fleet sales.
The acquisition of RRR Automotive Group is part of Group 1 Automotive’s strategy to grow its business in the U.S., especially in the Mid-Atlantic region, which is one of the most import-dominant and high-growth markets in the country. The acquisition also strengthens Group 1 Automotive’s relationship with Toyota, Honda, Kia, and Hyundai, which are some of the best brands in its portfolio.
The acquisition is expected to be accretive to Group 1 Automotive’s earnings per share, and to add over $500 million in annual revenues. The acquisition also adds 13 new vehicle dealerships and three collision centers to Group 1 Automotive’s existing network of 186 dealerships and 40 collision centers in the U.S.
Kerrigan Advisors: A leading buy/sell firm
Kerrigan Advisors, an automotive buy/sell firm, represented RRR Automotive Group in the sale of its 13 new car dealerships. Kerrigan Advisors is a leading advisor to auto dealers in the U.S., and has a track record of selling the most valuable auto retailers nationwide. The firm has completed 50 franchise sales in the Mid-Atlantic region since 2020.
Erin Kerrigan, founder and managing director of Kerrigan Advisors, said, “This transaction highlights the continued strength of the buy/sell market for top import franchises in economically vibrant markets. Despite an elevated interest rate environment and cooling industry profits, dealerships remain one of the most lucrative retail investments in the country.”
The transaction was also supported by Kerrigan Advisors’ sell-side team, including Ryan Kerrigan, managing director, and Gabe Robleto, vice president.