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Group 1 Automotive Adds Two Dealerships in New Mexico Market

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Group 1 Automotive, Inc. (GPI - Free Report) has acquired two BMW/MINI dealerships and expanded its business presence in the New Mexico area. The addition of these two dealerships, situated in Albuquerque and Santa Fe, is likely to generate annual revenues of $100 million.

These dealerships represent the only BMW and MINI franchises in the state of New Mexico. The acquisition also includes BMW Motorrad franchises in Albuquerque and Santa Fe, which makes the company the exclusive seller of BMW Motorcycles in New Mexico. These stores are part of Group 1 Automotive’s first motorcycle franchise in the United States.

Notably, the company regularly acquires and divests dealerships and franchises to expand business. Over the past few years, it has expanded footprint in the U.K. through acquisitions. With roughly 50 dealerships in the region, the company is well placed in Europe. After its U.K. expansion, Group 1 Automotive plans to further improve presence in the United States. For the short term, it aims to acquire attractive businesses in the U.S. markets that hold good growth opportunities while divesting the unprofitable ones.

With this latest acquisition, the company is expanding footprint in the dynamic New Mexico market and bolstering its partnership with BMW. In fact, the acquisition expands Group 1 Automotive’s total representation in New Mexico to seven automotive franchise operations.

In the past six months, shares of Group 1 Automotive have outperformed the industry it belongs to. Its shares have rallied 34.6% compared with the industry’s rise of 16.3%.

 

Rank & Stocks to Consider

Group 1 Automotive currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are Ford Motor Company (F - Free Report) , PACCAR Inc (PCAR - Free Report) and CarMax, Inc. (KMX - Free Report) .  While Ford currently sports a Zacks Rank #1 (Strong Buy), both PACCAR and CarMax has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ford has an expected long-term growth rate of 7.3%. In the past six months, shares of the company have grown 17%.

PACCAR has an expected long-term growth rate of 8.4%. In the past six months, shares of the company have gained 20.5%.

CarMax has an expected long-term growth rate of 12.6%. In the past six months, shares of the company have rallied 33.7%.

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