HOUSTON -

Four U.S. dealerships have been sold by Group 1 Automotive, the company announced on Friday.

In three separate transactions over the past three weeks, Group 1 Automotive said it has disposed of Miller Honda and Miller Toyota in Culver City, Calif.; World Ford in Stone Mountain, Ga.; and Messer Mazda in Amarillo, Texas. 

In addition to the dealerships, the company also disposed of accompanying real estate associated with the Stone Mountain dealership. 

In total, Group 1 said the four dealerships generated $176.7 million in trailing-12-month revenues, and the disposals are “consistent with its strategy of portfolio management and disciplined capital expenditure management.”

“We continually evaluate our portfolio of dealerships relative to required future capital expenditures and current levels of return on investment,” said Earl Hesterberg, Group1 president and chief executive officer.

“Based on that type of analysis we have decided to dispose of several dealerships and redeploy the capital to operations offering a higher future rate of return for our shareholders. We remain positive overall on the U.S. dealership environment and plan to pursue further expansion of our U.S. business in the near future,” he said.

Group 1 officials said the company expects to post a one-time net pre-tax gain of approximately $8.3 million on these disposals when it reports second quarter earnings later in July; the company plans to exclude these gains from adjusted operating earnings.

 

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