AM100 Mercedes dealer acquired by Group 1 Automotive

Group 1 Automotive now has more than 20 Mercedes-Benz dealerships in the UK following yet another acquisition from the expanding US-owned dealer group.

It announced last night that it has acquired L&L Automotive's four Mercedes businesses located north of London at Stevenage, Hertford, Hemel Hempsted and Bishop's Stortford.

The takeover of the Mercedes-Benz Hertfordshire market area comes just 10 weeks after Group 1 Automotive UK announced it was paying £346 million for Inchcape's entire dealer group operating in the UK - a deal expected to complete by the autumn.

On the L&L Automotive deal, Group 1 chief executive Daryl Kenningham stated: “We are delighted to expand our relationship with Mercedes-Benz while growing our operations in the U.K.

"This brand is outstanding and our ability to add these dealerships to our portfolio is a very positive growth action and presents an opportunity to further drive profitable growth for our shareholders.”

Group 1 Automotive bought its first UK Mercedes dealerships in 2018 from Robinsons in East Anglia - it went on to buy the rest of Robinsons three years later - and its existing Mercedes-Benz of Cambridge site is less than an hour from the L&L businesses at Stevenage and Bishop's Stortford.

AM100 dealer groups often look for synergies and management savings from adding dealerships within proximity of current operations, and Group 1 pointed out that the new additions "are contiguous with several other dealerships currently owned and operated by Group 1 in the UK".

The four extra dealerships are expected to sell more than 2,800 new and used vehicle units annually.

It said this acquisition is expected to generate $105 million (£83m) in annual revenues, with new cars sales recorded as net revenue under Mercedes' agency model.

As part of its takeover of Inchcape's dealerships Group 1 is also gaining 12 Mercedes dealerships in the East Midlands and North West of England, which will take its representation of the German brand here to locations. 

David Kendrick, chief executive of UHY Hacker Young (Manchester) which represented L&L Automotive's owners in the sale, said: "It is very unique for a Mercedes market area to come available and the first time one has transacted since agency was introduced in 2023.

"A strong group that will be a great addition for Group 1 who are on a serious expansion journey in the UK now with the Inchcape deal likely to complete imminently also."