Group 1 Automotive has grown its portfolio of Honda dealerships to 13 in total with the recent purchase of additional Honda dealerships in both Louisiana and Texas.
Group 1 announced Tuesday the acquisition of Honda of Slidell in Slidell, La., and Fernandez Honda in San Antonio.
“We are delighted to expand our partnership with Honda, one of the most powerful automotive brands in the U.S.," Group 1 president and chief executive officer Earl Hesterberg said in a news release. “Additionally, these acquisitions increase our scale in two of our existing markets, which both contain promising growth potential.
“It should also be noted that we intend to continue with our declared share repurchase intentions as we affirmed during our July 26 earnings call and with additional repurchases since that date,” Hesterberg continued.
According to Group 1, its two newly acquired Honda stores are projected to bring in an estimated $125 million in annual revenues. The store's names will remain the same.
In addition to Louisiana and Texas, Group 1 also represents the Honda brand in Florida, Mississippi, New Jersey, Oklahoma and Sao Paulo, Brazil.
Regarding the share repurchases Hesterberg mentioned, Group 1 has repurchased 189,600 shares since July 26. The average price per common share in those repurchases was $69.91, equaling a total of $13.2 million.
So far this year, Group 1 has repuchased 1.3 million shares, which equals 6.4 percent of the common share count the company had at the beginning of the year.
The average price on those 1.3 million shares repurchased this year is $68.63 per share, which equates to $89.5 million.
There is $60.2 million left in Group 1's board authorized common stock repurchase program as of Monday.
“Future repurchases may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions, and subject to Board approval and covenant restrictions,” the company said in a news release.
Editor's Note: Update to correct announcement date and spelling in headline.