GPB Capital affiliate Capstone Automotive Group said Monday it now has a majority equity stake in Prime Motor Group.
With the stake in Prime — which has more than 25 businesses throughout Massachusetts, Vermont, New Hampshire and Maine — this marks Capstone’s first foray into New England.
The acquisition also adds the Acura, Honda, Mercedes-Benz, Toyota and Volvo brands to Capstone’s portfolio.
“As the automotive retail industry continues to adapt to advancements in technology and shifting consumer preferences, the combination of Prime’s visionary management team and Capstone's support can help Prime prosper and expand as a leading provider of vehicles, parts, and service in New England,” GPB Capital founder and chief executive David Gentile said in a news release.
“We look forward to leveraging Prime's proven ability to optimize dealership performance and operations in order to benefit customers in all the markets served by our dealerships,” he said.
The deal was finalized this month, and terms were not disclosed.
Prime dealerships sold roughly 35,000 vehicles last year and generated over $1.4 billion in top-line revenue.
Capstone is aiming to buy more New England dealerships under the Prime umbrella in coming months, including a move into Rhode Island. Capstone has a five-year target of $4.5 billion in annual revenue for Prime, and aims to increase Prime personnel from 1,800 to more than 3,000 by 2020.
Prime plans to work with Capstone on building proprietary software aimed at operational and efficiency improvements. The group also will work with Capstone to open its own body shops.
Prime founder David Rosenberg is staying on as CEO. There will be no changes to daily operations.
“We have always been a family business committed first and foremost to our customers, employees and communities,” said Rosenberg. ”Our partnership with Capstone will enable us to adapt and grow without sacrificing the customer service and employee dedication that define our culture.”