Group 1 Automotive Completes Prime Automotive Acquisition

TL;DR

GPI just bought Prime Automotive, big move for them.

AI Summary

On June 19, 2024, Group 1 Automotive, Inc. filed an 8-K report detailing the completion of its previously announced acquisition of the Prime Automotive Group. This acquisition is expected to significantly expand Group 1's market presence and revenue.

Why It Matters

This acquisition marks a significant expansion for Group 1 Automotive, potentially increasing its revenue and market share in the automotive retail sector.

Risk Assessment

Risk Level: medium — Acquisitions of this scale carry inherent integration risks and potential impacts on financial performance.

Key Players & Entities

• Group 1 Automotive, Inc. (company) — Registrant
• Prime Automotive Group (company) — Acquired entity
• June 19, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share GPI New York Stock Exchange

Filing Documents

• gpi-20240619.htm (8-K) — 28KB
• exhibit991.htm (EX-99.1) — 14KB
• image_0.jpg (GRAPHIC) — 3KB
• 0001031203-24-000048.txt ( ) — 175KB
• gpi-20240619.xsd (EX-101.SCH) — 2KB
• gpi-20240619_lab.xml (EX-101.LAB) — 22KB
• gpi-20240619_pre.xml (EX-101.PRE) — 13KB
• gpi-20240619_htm.xml (XML) — 3KB

01 Other Events

Item 8.01 Other Events. On June 19, 2024, Group 1 Automotive, Inc. ("Group 1" or the "Company") was informed of a cybersecurity incident experienced by CDK Global LLC ("CDK"), which resulted in service outages on CDK's dealers' systems (the "CDK incident"). CDK provides clients in the automotive industry, including Group 1 dealerships in the U.S., with a software as a service ("SaaS") platform used by dealerships in managing customer relationships, sales, financing, service, inventory and back-office operations. The CDK incident has disrupted the Company's business applications and processes in its U.S. operations that rely on CDK's dealers' systems. In response to the CDK incident, Group 1 immediately activated its cyber incident response procedures and proactively took measures to protect and isolate its systems from CDK's platform. Despite the CDK service outage, all Group 1 U.S. dealerships continue to conduct business using alternative processes until CDK's dealers' systems are available. The Company's dealerships in the U.K. do not use CDK's dealers' systems and are therefore not impacted by the CDK service outage. CDK has advised that it anticipates the restoration of the dealer management system will require several days and not weeks. The timing of the restoration of other impacted CDK applications remains unclear at this time. Group 1's ability to determine the material impact, if any, of the CDK incident and the resulting service outage, will ultimately depend on a number of factors, including when, and to what extent, the Company resumes its access to the CDK's dealers' systems. A copy of the Company's press release regarding the CDK incident is attached hereto as Exhibit 99.1.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 99.1 Press release of Group 1 Automotive, Inc., dated as of June 24, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Group 1 Automotive, Inc. Date: June 24, 2024 By: /s/ Daniel J. McHenry Name: Daniel J. McHenry Title: Senior Vice President and Chief Financial Officer