UPDATE: Group 1 Automotive (GPI) Sells Brazil Operations for BRL 510M

July 5, 2022 6:25 AM EDT

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(Updated - July 5, 2022 6:27 AM EDT)

Group 1 Automotive, Inc. (NYSE: GPI) today announced that it has closed on the disposition of its Brazil operations. The Company also provided a year-to-date update on its share repurchase activity.

  • Disposition of Brazil OperationsThe Company announced that its wholly-owned subsidiary GPI SA, LLC closed the sale transaction under the Share Purchase Agreement (the "Agreement") with Original Holdings S.A., a sociedade por ações incorporated in Brazil and an affiliate of Simpar S.A, a publicly listed company in Brazil ("Original"), with UAB Motors Participações Ltda., a wholly-owned subsidiary of Group 1, as an intervening party ("UAB"). Under the terms of the Agreement, Original acquired 100% of the issued and outstanding equity interests of UAB from the Company for BRL 510 million in cash (the "Transaction"). As of year-end 2021, UAB operated 16 dealerships representing Land Rover, BMW, Honda and Toyota which generated BRL 1.7 billion in annual revenue."I want to thank our employees in Brazil for their dedication and work ethic over the past nine years of Group 1's ownership. This great team was instrumental in the development of a very successful and professional automotive dealership group. As announced last year, our strategic decision to exit the Brazilian market and redeploy capital to other growth opportunities is in the best interest of our shareholders. We look to continue growth via acquisitions in both the U.S. and U.K. markets, while also returning capital to our shareholders," said Earl J. Hesterberg, Group 1's President and Chief Executive Officer.For additional details regarding the Transaction, please see the information contained in the Form 8-K filed on November 15, 2021.The investment firm of Laplace Finanças Empreendimentos Participações Ltda acted as financial advisor to Group 1 Automotive, Inc.
  • Share RepurchasesThe Company also updated its year-to-date share repurchase activity of 1,437,729 shares of common stock at an average price of $176.74 for a total of $254.1 million, which represents 8.3 percent of Group 1's outstanding share count at January 1, 2022. Purchases 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. The Company expects that any repurchase of shares will be funded by cash from operations. Repurchased shares will be held in treasury.

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