Group 1 Automotive is expanding its portfolio of Honda dealerships while strengthening its footprint across Louisiana and Texas.
The publicly traded dealership group has acquired Honda of Slidell in Louisiana and Fernandez Honda in San Antonio. The deals bring Group 1’s Honda dealership count to 13, the company said in a statement Tuesday.
The acquisitions are expected to add $125 million in annual revenue to Group 1, the company said. The retailer posted $11.12 billion in revenue in 2017.
Rick Nelson, an analyst with Stephens Inc., wrote in a note to investors Tuesday that he sees benefits for Group 1 as the oil market recovers, given the company’s 35 percent exposure to Texas.
In January, Group 1 bought Audi El Paso and Subaru El Paso in Texas, which were expected to add approximately $65 million in annual revenue for the retailer.
Meanwhile, the company’s stock buyback activity has increased. Since July 26, the group repurchased an additional 189,600 shares for a total of $13.2 million. That leaves $60.2 million still available in the company’s current repurchasing program.
Group 1, of Houston, ranks No. 3 on Automotive News’ list of the top 150 dealership groups based in the U.S., with retail sales of 172,200 new vehicles in 2017.