Group 1 acquires 3 Buick-GMC dealerships in Texas

Group 1 Automotive has acquired three General Motors dealerships in Texas that the auto retail giant expects will add $760 million in annual revenue.

The Houston-based dealership group on Monday purchased Beck & Masten Buick-GMC North, Beck & Masten Buick-GMC South and Beck & Masten Buick-GMC Coastal Bend from the Beck & Masten group, according to Ryan Kerrigan, managing director of Kerrigan Advisors, a dealership sell-side firm in Incline Village, Nev.

Kerrigan Advisors represented Beck & Masten owners John Beck and James Masten in the sale.

The North and South stores are in Houston, while the Coastal Bend store in Robstown is part of the Corpus Christi area. It wasn’t immediately clear if the dealership names will remain.

“GMC has outstanding truck and SUV products and fits perfectly into these important Texas truck markets,” Group 1 CEO Daryl Kenningham said in a statement. “Buick’s products are poised to be leaders in the transition to vehicle electrification. … The addition of these dealerships builds on our growth story at Group 1.”

Beck & Masten, of Houston, retailed more than 11,700 vehicles in 2022, according to Kerrigan Advisors.

“These are uniquely high-volume stores and Texas is just a really strong market,” Ryan Kerrigan told Automotive News.

Group 1 said the Houston dealerships “are among the highest-volume dealerships in their brand in the U.S.”

Stephens Inc. analyst Daniel Imbro, in a note to investors Monday, said the Texas dealership purchases gel with Group 1’s acquisition strategy to maximize” high-volume, high-profit stores.”

“We expect GPI [Group 1] to remain active in the M&A market as sellers’ multiples normalize,” Imbro wrote.

Partners Masten and Beck have worked together since 1971 and plan to retire, according to Kerrigan Advisors.

Group 1 said Monday’s acquisition brings its total revenue added through dealership acquisitions this year to $910 million.

The retailer on March 27 purchased Estero Bay Chevrolet in Florida from Charles Winton and Pat Denson. That store is expected to generate $150 million in annual revenue.

In 2022, Group 1’s acquired dealerships were expected to generate $940 million in annual revenue, with an expected $200 million coming from its December purchase of Mercedes-Benz of Anaheim in California.

Group 1 ranks No. 4 on Automotive News’ list of the top 150 U.S. dealership groups based in th U.S., selling 154,714 new vehicles in 2022.