Group 1 Automotive, based in Houston, TX, has acquired five car dealerships from RRR Automotive Group, including the top two volume Honda dealerships in Maryland, according to Kerrigan Advisors, which represented RRR Automotive Group in the sale.
RRR Automotive Group, founded by Dick Patterson and Robert Hisaoka in the 1990s, is one of the most valuable import groups in the Mid-Atlantic. The group includes Toyota of Bowie, Kia of Bowie, Honda of Owings Mills, Honda of Greenbelt, College Park Hyundai and Toyota Certified at Capital Plaza -- one of the nation’s few stand-alone Toyota certified centers.
Patterson praised Kerrigan Advisors for their exceptional guidance and proficiency in securing the ideal buyer, ensuring a seamless transaction from inception to conclusion.
“Kerrigan Advisors’ expertise selling the most valuable dealership groups and their impeccable track record of success, particularly in the Mid-Atlantic region, made them the perfect partner for this transaction," Patterson said. "We could not have asked for a better advisor to ensure we identified the right buyer for our group and that the transaction ran smoothly from start to finish. Gabe Robleto and the entire Kerrigan Advisors team were in lock step with us at each stage of the process, and we couldn’t have been more satisfied with the final result.”
Kerrigan Advisors now has 50 franchise sales in the Mid-Atlantic region since 2020.
The transaction expands Group 1’s presence in the region and in the non-luxury import brand market. The Washington metropolitan region is an import-dominant market with market share at 72% to 24% higher than the U.S. average. RRR Automotive Group dominates the markets in which it operates, capturing 48% of Bowie, College Park, Greenbelt and Owings Mills’ import non-luxury sales since 2019. Additionally, the area is one of the nation’s most economically vibrant and fastest growing, with a population of 10 million.
“This transaction highlights the continued strength of the buy/sell market for top import franchises in economically vibrant markets," said Erin Kerrigan, founder and managing director of Kerrigan Advisors. "Despite an elevated interest rate environment and cooling industry profits, dealerships remain one of the most lucrative retail investments in the country."
Legal advisement for the transaction was provided by Steven H. Schram of Shapiro, Lifschitz & Schram for RRR Automotive Group and Brian Nolen of Nolen, PLLC for Group 1 Automotive.
