Capstone Automotive Group Acquires Majority Stake in Prime Motor Group

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Oct. 24, 2017—Capstone Automotive Group (Capstone), an affiliate of GPB Capital, acquired a majority equity stake in Prime Motor Group (Prime).

Prime operates more than 25 dealerships and related businesses in Massachusetts, Vermont, New Hampshire, and Maine.

The purchase will help GPB Capital continue to grow its automotive retail footprint, as well as streamline operations, finance inventory, and optimize business management at all of its dealerships. 

The acquisition of Westwood, Massachusetts-based Prime Motor Group, which included the underlying real estate for its dealerships, was finalized Oct. 2017, and terms were not released.

In total, Prime's dealerships—which provide new and used cars, and meet customers' ongoing parts and service needs—generated more than $1.4 billion in top-line revenue and sold approximately 35,000 cars in 2016.

Prime brings new brands to Capstone's dealerships, including core brands Toyota and Honda, and as well as luxury brands Acura, Mercedes-Benz, and Volvo.

Prime's founder, David Rosenberg, will continue to serve as CEO, and daily company operations will not experience any changes.

Capstone hopes to purchase additional new dealerships in New England under the Prime platform, and expand into the Rhode Island market, in the coming months, and raise its annual revenue to $4.5 billion within the next five years.

Prime's growth plans also include increasing its personnel from 1,800 staff members to more than 3,000 over the next three years.

In addition, Prime will work with Capstone to develop customer-friendly software to streamline operations, create efficiencies, and lower costs.

Capstone's resources and support will also help Prime open its own body shops in order to expand and improve the auto services it provides to customers.

GPB Capital will seek to further strengthen Capstone's existing dealerships by leveraging the expertise of Prime's senior leadership team to create a corporate structure designed to increase profit margins and lower costs while facilitating scalable growth and optimizing service offerings.

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