Jan 24 Group 1 Automotive, the
fourth-largest U.S. auto dealer group, has agreed to buy
Brazilian automotive retail firm UAB Motors Participacoes S.A
for about $146 million in cash and stock, to expand into
Brazil's fast growing market.
Group 1 said on Thursday it reached a definitive ageement to
buy UAB for $47.4 million in cash and 1.45 million Group 1
shares, valuing the deal at about $145.6 million based on Group
1's close on the New York Stock Exchange on Thursday.
The U.S. auto dealer, which will also assume about $62
million of UAB debt, said the deal should be modestly accretive,
adding 3 cents to 5 cents a share to its 2013 earnings.
The deal will give Group 1 ownership of 18 dealerships --
two Toyota, four Nissan, two BMW, two BMW/MINI, three Renault,
three Peugeot, one Land Rover and one Land Rover/Jaguar -- which
are expected to generate about $650 million in annual revenues.
"To enter one of the largest auto markets in the world with a
well-established retail infrastructure and management team
provides Group 1 and our shareholders with an incredible growth
opportunity," Group 1 chief executive Earl Hesterberg said in a
The deal is expected to close around Feb. 28, 2013.