The deal is expected to add more than $500 million in annual revenue.
Group 1 Automotive Inc. expanded in the greater Washington, D.C., and Baltimore markets with its acquisition of RRR Automotive Group, a move expected to add more than $500 million in annual revenue.
RRR Automotive on Monday sold two Honda, one Toyota, one Kia and one Hyundai franchised dealerships, a certified pre-owned store selling Toyota vehicles and three collision centers — all in the Maryland cities of Bowie, Greenbelt, Owings Mills, College Park, Beltsville and Landover.
Kerrigan Advisors, a sell-side advisory firm in Incline Village, Nev., which represented RRR Automotive in the sale, said in a statement the region is an import-strong market and RRR Automotive "dominates the markets in which it operates, capturing 48 percent of Bowie, College Park, Greenbelt and Owings Mills' import nonluxury sales since 2019."
Gabe Robleto, senior vice president with Kerrigan Advisors, said the market area has one of the highest gross domestic profit growth rates and is one of the most resilient in the country, especially during recessions.
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Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.
Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.
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