Hard on the heels of last month's expansion into Brazil, used-and-new car dealer Group 1 Automotive (NYSE:GPI) announced Wednesday that it has just bought four Ford (NYSE:F) dealerships in the United Kingdom, all in the area southwest of London.
Located in the towns of Farnborough, Guildford, Wokingham, and Bracknell, Group 1's new dealerships are estimated to do $177 million in annual business. The company says it will be rebranding all four of them with the "think Ford" brand, and says they will complement the company's existing BWM/Mini dealerships in the same region.
Financial terms of this acquisition were not disclosed. Last month, however, Group 1 paid a 0.22 price-to-sales ratio when purchasing Brazil's UAB Motors Paricipacoes dealership chain, a valuation roughly equal to its own shares' 0.2 P/S ratio. Assuming this week's U.K. purchase was done on similar terms, the approximate value of the transaction should be in the neighborhood of $35 million.