In a move that the company expects to generate approximately $115 million in annualized revenues, Group 1 Automotive has acquired five Volkswagen franchises in the U.K.
The franchises, located in the county of Essex — which is east of London — include four Volkswagen franchises and one Volkswagen Commercial Vehicle franchise.
Group 1 said the acquired operations are located in the cities of Chelmsford, Colchester, Romford and Southend, and the company added that the territory is near various additional existing U.K. automotive dealerships that it currently owns and operates.
With the acquisition, Group 1 increases its U.K. operations to 49 dealerships (65 franchises). Those operations include 11 existing brands: Audi, BMW, Ford, Jaguar, Kia, Land Rover, MINI, SEAT, Skoda, Toyota and Volkswagen Commercial Vehicles.
Group 1 in June also disposed of three U.K. franchises, including BMW and MINI franchises in the city of Watford and a Volkswagen Commercial Vehicle franchise in the city of Hatfield. Those franchises generated about $70 million in trailing-12-month revenues, according to the company.
Group 1 owns and operates 184 automotive dealerships, 238 franchises and 48 collision centers in the United States, the United Kingdom and Brazil. Those offer 30 brands of automobiles.
"We are pleased to further expand our global relationship with Volkswagen through the addition of these five franchises to our growing UK platform," Group 1 president and chief executive officer Earl Hesterberg said in a news release.