P&A Providers & Administrators
MenuMENU
SearchSEARCH

Group 1 On the Lookout for More Acquisitions, Hesterberg Says

February 9, 2012
2 min to read


Group 1 Automotive Inc. will snap up more dealerships in 2012, CEO Earl Hesterberg said, but he doesn’t expect the retailer to make more acquisitions than it did in 2011.


Last year, Group 1 added 14 franchises with total estimated annual revenues of $563 million.

Ad Loading...


“We clearly have the financial ability to” exceed 2011’s numbers, Hesterberg told Automotive News today after Group 1, the nation’s fourth-largest dealership group, reported record fourth-quarter profits. “But unless the attractive deals appear, I wouldn’t predict that at this time. But we would if we could.”


So far in 2012, Group 1 has acquired Volkswagen and BMW franchises with total estimated annual revenues of $93.4 million.


Group 1’s preferred strategy is acquiring a bigger group instead of one or two stores at a time, Hesterberg said.


“The more scale you get in a given market, which is usually what you get in a larger acquisition, is better for us,” he said. “We’re completely open to larger acquisitions.”


That said, a bigger purchase is not very likely in the current market, Hesterberg said. Group 1 is in continual discussions for smaller one- or two-store deals, he said, but there are no active discussions on a big acquisition.

Ad Loading...


Group 1 also won’t restrict acquisitions based solely on geography or brands, Hesterberg said. While his first preference is to strengthen the company in its current markets, he’ll consider entering new markets if the potential payback meets the company’s target of a 15 percent pretax return on investment.


“We’re more open on the brand mix of the acquisitions than we’ve ever been since I’ve been at Group 1,” Hesterberg said.


And while he’s not “100 percent convinced yet” of Chrysler Group, its robust performance last year is attention-getting.


“It hasn’t made it to the top of the list yet,” said Hesterberg. “But never say never.”


Earlier today, Group 1 reported fourth-quarter 2011 earnings of $20.8 million, or 90 cents a share, compared with earnings of $10.6 million, or 45 cents, during the same quarter last year. Revenue increased 13 percent to $1.63 billion.

Ad Loading...


For all of 2011, Group 1 said it posted earnings of $82.4 million, or $3.47 a share, compared with earnings of $50.3 million, or $2.09, in 2010. Revenues increased 10.4 percent to $6.1 billion.


Group 1 ranks No. 4 on the Automotive News list of the top 125 U.S. dealership groups with new-vehicle sales of 97,511 in 2010.

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →