Store-sale roundup: Group 1 expands in Northeast & Qvale’s move in Silicon Valley
A trio of dealerships changed hands this week with transactions involving Group 1 Automotive, Qvale Auto Group and US Auto Trust.
According to a news release from Group 1, the publicly traded company expanded its retail business presence in Massachusetts with the acquisition of two Toyota dealerships. The dealerships are located in Hyannis and Orleans on Cape Cod.
Group 1 indicated these stores are expected to generate approximately $120 million in annualized revenues.
“We are excited to grow our scale in New England with two additional stores and expand our long-standing partnership with Toyota,” Group 1 president and chief executive officer Earl Hesterberg said in the news release.
The company noted the acquisition of these stores brings Group 1’s total U.S. Toyota dealership count to 15 and increases the total representation in New England to 10 dealerships, which includes the Audi, BMW, Lexus, Subaru, and Toyota brands.
And in another transaction, the Presidio Group said in a separate news release that the investment bank specializing in retail automotive and related M&A transactions exclusively advised Bruce Qvale on the sale of his Jaguar Land Rover Stevens Creek dealership franchises to US Auto Trust.
The move to acquire the Silicon Valley rooftop expands US Auto Trust’s presence in California as the company also owns the Jaguar Land Rover Newport Beach dealership franchises.
“We were delighted to have the opportunity to acquire our second Jaguar Land Rover dealership in California,” US Auto Trust President Matt Kaiser said in the news release from the Presidio Group. “This strategic acquisition expanded our dealership footprint into the highly-desirable San Jose market.”
The Qvale Auto Group was founded by Bruce Qvale’s father, Kjell Qvale, in 1947 to import MG sports cars and later the VW Beetle to the West Coast. Kjell Qvale was the co-founder and chairman of the first Pebble Beach Concours d’Elegance and is a member of the British Sports Car Hall of Fame.
“The Qvale family has a storied history in the California auto industry,” said Brodie Cobb, Founder and chief executive officer of the Presidio Group. “Working with Bruce Qvale to find the right buyer for this exceptional luxury dealership was a privilege.”
George Karolis, president of the Presidio Group, added, “We were honored to work with Bruce Qvale to make this transaction happen. Luxury brands such as Jaguar and Land Rover are in high demand and the closing of this transaction is another reflection of the strength of the dealership M&A market.”
Bruce Qvale described why he asked Presidio Group to be involved.
“We turned to the Presidio Group to find the right buyer for our San Jose dealership because of their expertise and knowledge of the market,” said Qvale, who president of Qvale Auto Group. “Presidio’s process and professionalism are second to none.”
Now that this deal is closed, the Presidio Group is turning its attention to its next deal.
“Presidio has now represented our clients in the sale of nine franchises in 2021, with many more transactions currently in process. We expect 2021 to be one of the most active years on record for automotive M&A,” Karolis said.