Group 1 continues wheelin’ and dealin’

National buying spree includes S.C. deals that could bring additional $1B in revenue

Houston-based Group 1 Automotive, one of the nation’s largest car retailers, continues to expand its network, buying up dealerships on both coasts during the past month.

The company, with 202 dealerships in the U.S. and U.K., on Monday said it bought Modern Classic Motors near Hilton Head Island, S.C., which sells Mercedes-Benz, Sprinter and Honda vehicles. The dealerships are expected to generate $140 million in annual revenue. Group 1 has five dealerships and a collision center in South Carolina, according to its website.

“We are delighted to grow our relationship with Mercedes-Benz and Honda while adding scale to our successful Hilton Head operations with these highly desirable brands,” Group 1 President and CEO Daryl Kenningham said in a news release.

The additions in South Carolina follow Group 1 announcements of two deals in February.

On Feb. 26, the company said it had bought two Lexus dealerships in Southern California expected to generate $350 million in annual revenue. On Feb. 12 it said it bought RRR Automotive Group — which has dealerships in the Baltimore-Washington, D.C., area — and that it is expected to generate more than $500 million in annual revenue.

The deals so far this year could bring an additional $1 billion in revenue to Group 1, the company said. Its acquisitions in 2023 added an estimated $1.1 billion in revenue.

Group 1 owns and operates 202 automotive dealerships, 265 franchises, and 43 collision centers in the U.S. and U.K. The company reported net income of $602 million and total revenue of $17.87 billion in 2023. In 2022, it reported $754 million in net income and $16.2 billion total revenue in 2022.