03:49 AM EDT, 04/15/2024 (MT Newswires) -- Group 1 Automotive ( GPI ) said Monday it agreed to acquire the UK retail automobile sales business and related real estate from a subsidiary of Inchcape for about 346 million British pounds ($439 million) in an all-cash deal, including 220 million pounds worth of appraised real estate properties.

Group 1 already operates in the UK but Inchcape's 54 dealerships complement its footprint and open new markets. Inchcape's UK car dealerships generated about 2.1 billion pounds in 2023 revenue, according to a statement.

The deal is expected to close in Q3, pending approval from the Financial Conduct Authority.

Group 1 Chief Financial Officer Daniel McHenry said the deal would be funded with debt and cash on hand.