Grady family sells BMW dealership

Group 1 Automotive Inc. has bought the former Grady BMW, ending the Grady family's 59-year run as auto dealership owners in Mobile.

Houston-based Group 1 (NYSE: GPI) completed its purchase Tuesday of what is now called BMW of Mobile. The price was not disclosed. Group 1 plans to purchase the Government Boulevard dealership site later, said Pete DeLong-

champs, a vice president for the buyer.

Group 1 said it expects the dealership to take in $37.7 million in yearly revenue.

There will still be a Grady presence at the BMW dealership, as Kelly Grady will stay on as general manager.

"We've been impressed with Kelly and have decided to keep him on," said DeLongchamps. "We hope he will be able to help us grow the business."

Grady did not return calls seeking comment.

Group 1 has largely put acquisitions on the shelf this year as it struggles with poor car sales, but DeLongchamps said his company, the fourth-largest auto retailer in the United States, couldn't pass up the chance to add a second dealership in Mobile. In 2006, Group 1 bought Pat Peck Nissan in Mobile, and the Pat Peck Nissan, Honda and Kia dealerships in Gulfport. The firm also owns World Ford in Pensacola.

The two Mobile dealerships will be able to share back-office operations such as accounting and human resources, cutting costs. "This is a great opportunity to add scale," DeLongchamps said.

Overall, Group 1 owns 96 dealerships in the United States and the United Kingdom, selling 31 brands of vehicles. That includes 11 BMW franchises in the

CONTINUED 1 | 2 Next