AutoCanada took another major step towards divesting its U.S. properties, selling Toyota of Lincolnwood in the Chicago area for $40 million in cash (CAD) to Serra Automotive.

The deal closed Monday. AutoCanada anticipates selling the rest of its remaining U.S. dealerships by the end of the year.

Since classifying its U.S. segment as discontinued operations at the end of 2024, AutoCanada has completed seven American divestitures totaling just under $106 million (CAD).

Once its remaining U.S. stores are sold, AutoCanada anticipates total proceeds from U.S. divestitures will be on the upper end of the previously announced $115 million to $130 million range.

The Canadian dealer group received about $40.1 million in cash for goodwill and fixed assets, excluding inventory and net working capital. Toyota of Lincolnwood generated approximately $79.4 million in revenue during the 12 months ending March 31 and $5.8 million in net income during the same time frame.

“The sale of Toyota of Lincolnwood marks a significant milestone in our U.S. exit and reflects the progress we have made on the strategic decision to focus our capital and management attention on our core Canadian dealership and collision operations,” AutoCanada CEO and interim chief financial officer Samuel Cochrane said in a news release.

“While the divestiture process has taken longer than originally anticipated, we have now generated approximately $106 million of proceeds from our U.S. dealership sales,” Cochrane said. “Supported by the underlying real estate value associated with our remaining U.S. stores, we remain confident in achieving toward the high end of our expected $115–$130 million proceeds range, and completing the sale of our remaining U.S. dealerships this year.”

Meanwhile, the buyer in this deal, Serra Automotive, expands its footprint in the Chicago area and its Toyota investment.

In a news release from The Presidio Group, which advised AutoCanada, Serra Automotive chairman Joe Serra said, “This was an attractive opportunity for us in a market where we wanted to grow.

“Toyota is a proven brand with long-term strength, and we liked the positioning of this store in the Chicago suburbs,” Serra said. “Presidio ran a professional and well-structured process that brought the transaction to a successful close, and we thank them for their role in bringing the parties together.”

Presidio managing director Alex Watterson added, ““We’re grateful to AutoCanada for trusting Presidio to advise on this transaction and help it achieve its objectives. This deal reflects the strength of the Toyota brand and demonstrates how a thoughtful and disciplined process can unlock maximum value for well-positioned assets.”

AutoNation adds to California footprint

AutoCanada and Serra weren’t the only dealer groups on the move this week.

AutoNation broadened its presence in California with the purchase of three luxury dealerships in the San Francisco Bay Area on Monday: Audi Fremont, Fletcher Jones Motor Cars (Mercedes-Benz) of Fremont, and Porsche Fremont.

The stores collectively represented about $400 million in annual revenues and 4,800 retail new/used vehicle sales.

AutoNation purchased the dealerships from Fletcher Jones Automotive Group, which was advised by Presidio on the deal.

AutoNation now has 46 locations in California, including 21 luxury stores, seven domestic stores and 16 import stores, along with a collision center and auction center.

The retailer now has 25 Mercedes-Benz dealerships nationwide, along with 11 Audi dealerships and 8 Porsche stores.

“This acquisition strengthens our Premium Luxury portfolio in a highly attractive California market and reflects our disciplined approach to deploying capital into high-quality assets,” AutoNation CEO Mike Manley said.

“Over the past 12 months, including our Baltimore, Chicago, and Atlanta area acquisitions, we have added approximately $1 billion in annual revenue, enhancing our scale, supporting long-term growth, and positioning us to deliver attractive returns for shareholders.”

Fletcher Jones’ sales of these three dealerships follows its purchase of Mercedes-Benz of Beverly Hills in March. That deal, also facilitated by Presidio, expanded the group’s Southern California footprint.

“When we decided to sell these stores as part of our regimented portfolio management initiatives, we set out to find a buyer that would provide the right level of care for the dealerships and their employees and customers,” said Keith May, president of Fletcher Jones Automotive Group, in a news release from Presidio.

“Having sold two stores to AutoNation in 2025, we had strong confidence in its ability to represent these great luxury brands,” May said. “This is our third transaction with Presidio, our trusted partner, in less than a year, and their team delivered once again, with their utmost professionalism and expertise ensuring another smooth close.”

Presidio president George Karolis added, “We were honored to represent Fletcher Jones, one of the most iconic luxury dealership groups in the country, in this sale. Their trust in the Presidio team and confidence in our ability to forge relationships with the industry’s biggest and best retailers like AutoNation is truly gratifying.

“With our track record, including transactions involving 24 Mercedes- Benz dealerships, Presidio is proud of the deep expertise we’ve developed in high-end, luxury automotive M&A.”

M&A in Mass

Up in New England, John Crowley, who owns Best Ford in Nashua, N.H., has acquired Grieco Chrysler Dodge Jeep Ram of Methuen (Massachusetts).

The deal was announced by Nancy Phillips Associates.

“When we decided to sell this dealership, our goal was to focus our efforts on markets that aligned more closely with our core operations and long-term strategy,” said George Smith of Rhode Island-based Grieco Auto Group. “Because the store was outside of our primary market area, it made sense to concentrate our resources where we have the greatest strength and opportunity.”

This is the second acquisition for Crowley, who now owns stores in New Hampshire and Massachusetts.

Carrie Forbes at Nancy Phillips Associates represented Grieco Auto Group and facilitated the deal.