02 July 2024

US retailer Group 1 Automotive has bought Mercedes retailer L&L Automotive for an undisclosed sum.

L&L operates four Mercedes agency sites north of London in Hertford, Stevenage, Hemel Hempstead and Bishops Stortford. Group 1 already operates five Mercedes sites to the east of the L&L locations in Cambridgeshire and Norfolk.

Commenting on the purchase, Group 1’s chief executive officer Daryl Kenningham (pictured) stated: “We are delighted to expand our relationship with Mercedes-Benz while growing our

Daryl Kenningham, Group 1 CEO

operations in the UK. 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.”

The L&L purchase is expected to boost Group 1 by “2,800 new and used cars annually” and “generate US$105 million” (£83m) in “sales recorded as net revenue under the agency model”, according to the US firm.

The latest accounts for L&L show a turnover of £117.4m for the year ended 31 December 2022, up from £106m in 2021. Pre-tax profit for both years was £5.6m.

Group 1 is also in the process of buying Inchcape’s UK retail operations for £346m and is expected to complete this purchase by the end of September.

The US firm which operates 206 sites and 270 franchise across the UK and US, added: “Year to date 2024, Group 1 has completed $1.1bn (£870m) of acquired revenues. With the pending Inchcape U.K. dealership acquisition, which is expected to close during the third quarter of 2024, total acquired revenues are expected to be approximately $3.8bn (£3bn) at the time of closing.”

Tags: Group 1, L&L Automotive, Mercedes