Company: GPI
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001031203-25-000013
Chunk: 47

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 47
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 %70Massachusetts7.8 %20California7.2 %7Oklahoma5.0 %19Georgia3.5 %9Maryland3.5 %7Florida2.7 %5New Mexico2.4 %7New Hampshire2.3 %5South Carolina2.1 %6New Jersey2.0 %8Maine1.5 %6Louisiana1.3 %6Kansas 1.0 %3New York0.8 %2Mississippi0.4 %1Alabama 0.2 %177.4 %182U.K.United Kingdom22.6 %153100.0 %335 

4

Business Strategy

Our business strategy is built on our commitment to maximize the return on investment for our stockholders. We intend to execute our business strategy through three interrelated pillars:

•Growth;

•Local Scale; and

•Full Rooftop Potential.

Growth

Allocating our shareholders’ capital in support of maximizing our return on investment is our highest priority. When evaluating an acquisition, we run disciplined valuation models, with expectations based on our experience, incorporating growth and investment. We then compare the projected acquisition return to the expected return of repurchasing shares of our common stock, repaying debt, or using the capital for other uses.

In 2024, we completed the acquisition of Inchcape Retail automotive operations (“Inchcape Retail”) in the U.K., consisting of 54 dealership locations, certain real estate and three collision centers (the “Inchcape Acquisition”). The Inchcape Acquisition approximately doubled our portfolio across the U.K.

Consistent with our acquisition activity completed in 2022 through 2024, we intend to pursue opportunities in growth-positioned markets that are economically accretive to our existing markets. Our focus is on brand, geographic fit, and large dealership operations and/or dealership clusters that will provide attractive returns to our portfolio. Acquisitions completed within our existing markets or large dealership groups allow us to capitalize on economies of scale and provide for cost saving opportunities in key expense areas such as used vehicle sourcing, advertising, purchasing, data processing and personnel utilization. In addition to cost savings opportunities, scale enables us to make the EV, facility, compliance, real estate, personnel development and training, and technology investments necessary to thrive in today’s retail automotive industry.

Acquisition success depends upon our relationship with our OEM partners. We work closely with our OEM