The growth in cross-border dealership M&A activity continues.
Lasher Auto Group has sold five dealerships in California — Elk Grove Acura, Audi, Chrysler/Dodge/Jeep/Ram, Subaru and Volkswagen — to Canada-based Knight Automotive Group, according to a news release from Kerrigan Advisors, which represented Lasher in the deal.
“We were honored to represent Lasher Auto Group on its sale to Knight Automotive Group,” said Erin Kerrigan, the firm’s founder and managing director. “This transaction is a perfect example of the tremendous value buyers place on high volume, high performing dealership platforms in top growth markets, such as Elk Grove, California.
“The Lasher Auto Group is one of the highest volume CJDR dealers in the U.S. resulting in a significant price premium due to strong buyer demand despite some of the economic headwinds on the horizon.”
Lasher Auto Group co-owner Scott Lasher said: “We’ve always prioritized our long-standing connection to the thriving Sacramento auto retail market, particularly our customers and employees.
“We are grateful that Kerrigan Advisors identified a private buyer with the same community, customer and employee focus — one committed to growing a group in California and being great stewards of our family’s dealership group going forward,” he said.
Lasher Auto Group co-owner Mark Lasher said: “Kerrigan Advisors is the premier advisor for dealership groups for a reason. They provide guidance through every phase of the transaction and do so in alignment with their client’s strategic objectives. They ushered this transaction from beginning to a very successful outcome and found an international buyer who appreciated the lucrative financial opportunity the Sacramento auto retail market, particularly in Elk Grove, presents.”
Knight Automotive Group first expanded to the U.S. in January, purchasing California’s Sunrise Ford of Fontana and Sunrise Ford of North Hollywood from the Bruncati family.
As reported by Auto Remarketing correspondent Sarah Rubenoff earlier this year, Kerrigan Advisors is seeing considerably more international dealers coming to the U.S. or at least discussing a potential move. The largest portion is from Canada, but Kerrigan was also in discussion with dealers from Mexico and Europe at the time of the reporting.
“I think this will continue to be something we see, because I don't see our franchise law system going anywhere,” Kerrigan told Auto Remarketing Canada earlier this year. “And so those protections will continue to ensure that the capital that dealers invest is protected — and that's unique to our country.”
Beyond franchise protection laws for dealers, Kerrigan cited one more challenge sending Canadian dealers and beyond to the U.S.: electrification.
Kerrigan foresees that the U.S. will likely be the slowest to change in comparison to most other modern, Westernized countries. This is due in part to the country’s size, as well as grid infrastructure challenges.
Commenting on the Lasher move, managing director Ryan Kerrigan said: “This transaction reflects a trend we reported on in our second quarter 2022 Blue Sky Report. Specifically, the rise in international dealers coming to the US to acquire dealerships, a reflection of the value these buyers place on our strong franchise laws.
“We believe this trend will continue as the OEMs seek to disrupt the legacy auto retail model, particularly outside the US where franchise protections are weak, and ultimately implement their agency model which could have a negative impact on future franchise values.”
Lithia & Driveway has acquired its first Ferrari dealership and spread its footprint into Colorado.
The retailer said Tuesday it has purchased Ferrari of Denver, which is the only Ferrari store in the greater Rocky Mountains region.
The dealership also sells vehicles from Bentley and other luxury brands.
Lithia anticipates Ferrari of Denver will generate annualized revenues of $75 million, which would bump the retailer’s expected annualized revenue this year to more than $3.3 billion.
“We’re thrilled to welcome this Denver team into the Lithia & Driveway family,” Lithia president and CEO Bryan DeBoer said in a news release.
“We are ready to expand our business through greater convenience and optionality to cultivate customer loyalty,” DeBoer said. “Ferrari of Denver will fuel our drive to Earn Customers for Life, while becoming a centrally located hub for premium luxury vehicles in the country.”
Elsewhere, Alpha Auto Group has purchased Mercedes-Benz of Fresno from Scott Biehl, according to a LinkedIn post from The Presidio Group, which advised Biehl on the sale.
The store is Alpha’s first in California and its first Mercedes dealership, Presidio said in the post.
“Presidio’s clients return to us because we understand their goals. We have a longstanding relationship with Scott Biehl, so when we matched him AAG, we knew both parties would emerge as winners,” Presido president and partner George Karolis said.
Presidio CEO Brodie Cobb added, “We treat people like we want to be treated. With Scott, like all others, we want clients for a lifetime. That’s just our mindset.”
For this dealership M&A roundup, we go to Southern California.
Group 1 announced Thursday that it has purchased Mercedes-Benz of Anaheim, which bumps the retailer’s Mercedes store count to 17 throughout the U.S. and U.K.
Group 1’s purchases this year represent acquired annual revenues of $940 million. Last year, the retailer had acquired revenues of $2.5 billion.
“We want to welcome the team at Mercedes-Benz of Anaheim to the Group 1 family and are extremely pleased to expand our existing operations in Southern California with this great brand,” Group 1 CEO Earl Hesterberg said in a news release.
“Our strong relationship with Mercedes-Benz and experience in this market area make this dealership an excellent addition to our portfolio,” he said.
Moving to Carson, Calf., Jerry Heuer and Hani Nassif have sold Win Chevrolet and Win Hyundai, according to a news release from Performance Brokerage Services.
Bob Nouri and Pete Shaver, who plan to launch the Nouri/Shaver Automotive Group, purchased the Chevrolet dealership.
Brandon Stevens Motors purchased the Hyundai store. This is the seventh California dealership for the Kansas-based group.
“After closing on the sale of our Win Chevrolet and Win Hyundai dealerships, I can’t say enough about the added value that Jason Stopnitzky of Performance Brokerage Services brought to the table,” Heuer said.
“From finding the perfect buyer, to his ability to shepherd the very complicated deal to a closing. In an age where truth, honesty, and integrity are often bent, Jason has demonstrated that character is not lost. It’s not often that people do exactly what they say. Bob Nouri is also absolutely a man of his word, and his organization was a delight to work with. With deep gratitude, I thank you both, and I pray that you have incredible success in the future.”
NADA Show 2023 kicks off in Dallas in less than two months, but one of the nation’s largest dealer groups is already making a move in the DFW area.
Lithia & Driveway announced Tuesday that it has purchased Meador Chrysler, Dodge, Jeep, Ram in Fort Worth, which the retailer says is the second-largest CDJR dealership in the market.
Lithia anticipates Meador CDJR will generate annualized revenues of more than $200 million. That would bump the company’s total expected annualized revenue to more than $3.3 billion this year.
“We are thrilled to welcome this experienced and dedicated team to the Lithia & Driveaway family,” Lithia president and CEO Bryan DeBoer said in a news release.
“Meador CDJR has a long-standing reputation for delivering exceptional service, earning them the FCA Customer First Award for Excellence,” he said.
Time Auto Group and Daniel Crainic have purchased Gresham Chrysler Dodge Jeep Ram in Oregon from Dorian Boyland and Dan Kaiser, according to a news release from Performance Brokerage Services.
Boyland is a former MLB player who founded Boyland Auto Group in 1985 after retiring from baseball two years earlier. Boyland purchased Gresham Dodge in 1985 and the group has since grown to 22 dealerships across six states.
In the news release, Boyland said: “After more than 37 years, more than 20 dealerships, and numerous transactions, I have to admit that none of my opportunities would have been available without the assistance of Moshe Stopnitzky of Performance Brokerage Services. For that, I am truly grateful and blessed to have had him and his company in my life. Every dealership that they presented to me, I bought, and none of these stores were on the market.
“My phone doesn't ring from other dealers offering me an opportunity to purchase their stores. I have relied 100% on Moshe to grow as a dealer and as a person, after years of buying and increasing rooftops,” Boyland said. “Moshe convinced me that it was time to start downsizing before it was too late, and I thank him. He advised me to sell my first dealership, Gresham Dodge, and within a day he had a buyer that was qualified and excited about the purchase. We closed in 120 days with Moshe driving the deal all the way to closing. Boyland Auto Group would not be in existence without Mr. Stopnitzky.”
Meantime, Crainic founded Time Auto Group in 2019. In the news release, he said: “It has been my privilege to work with Moshe and Jason Stopnitzky of Performance Brokerage Services. They are totally committed team players with tons of insight and incredible skills. When the going gets tough, they get going. I thank them so much for the experience, and am looking forward to the next one”
A Tennessee team is welcoming more Alabama to the family.
Well, at least in auto retail.
Nashville-based Carlock Automotive Group said it has purchased Mobile-based Gulf Coast Automotive Group, expanding Carlock’s presence in the Yellowhammer State.
Gulf Coast Automotive Group includes Audi Mobile, Volkswagen Mobile, Porsche Mobile and Volvo Cars Mobile, which are located in three buildings across 9.5 acres.
“We are so excited at Carlock Automotive Group to be serving Mobile and the entire Gulf Coast market,” Carlock Automotive Group president Clay Carlock said in a news release.
“Our family-owned business with dealerships across Tennessee, Mississippi and now a total of six franchises in Alabama continues to grow through successfully partnering with the communities where we are located,” he said. “We welcome 70 new associates at the four stores to the Carlock family and look forward to welcoming the entire community to come see us and join our family as well.”
Further north to the Mountain State, the Weimer family has sold Weimer Volkswagen of Morgantown, W. Va., to Martin Management Group, according to a news release from Performance Brokerage Services.
“While we weren’t looking to sell any of our stores, Courtney Bernhard and George Chaconas of Performance Brokerage Services brought an unexpected buyer and made this transaction smooth and easy,” Austen Weimer said in a news release.
The Weimer family will retain the rest of their West Virginia and Maryland stores and plan to add more dealerships soon.
The auto dealer buy-sell space continues to flourish, but in recent months, it has been the private dealer groups doing the buying, as activity among the publics has slowed.
Overall, according to the Q2 2022 Haig Report from Haig Partners LLC, there was a 3% year-over-year spike in …
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Foundation Automotive Corp., which has stores in both the U.S. and Canada, said Tuesday it has purchased its first Mercedes-Benz dealership, acquiring Mercedes-Benz of Wichita Falls in Texas.
This is the group’s ninth store in Wichita Falls, Texas, and 36th overall.
Kendrick Jones will be the dealership’s general manager.
“Mercedes-Benz is synonymous with excellence and this acquisition is a pinnacle for Foundation. I’ve always aspired to be a Mercedes-Benz dealer, it is every car dealer's dream,” Foundation Automotive chief executive officer and president Kevin Kutschinski said in a news release. “We plan to expand and build a brand-new Mercedes-Benz facility in the future.”
Foundation Auto USA chief operating officer and president Corey Byrd said: “The addition of Mercedes-Benz is a huge win for our team. I have been a Mercedes-Benz driver and fan of the brand for many years, and I can’t wait to work with Mercedes-Benz and expand our brand options.”
Elsewhere on the dealership buy-sell front, i.g. Burton Auto Group has purchased Newark Chrysler Jeep Dodge Ram of Delaware from Gary Hendrixson Sr. and Gary Hendrixson Jr., according to Performance Brokerage Services, which advised on the sale.
MJ Lofland, vice president and COO of i.g. Burton Auto Group, said in a news release: “We just recently acquired our 10th store with the help from Gershon Rosenzweig and Matt Wilkins of Performance Brokerage Services. They were extremely professional and had thorough knowledge of the entire operation we were looking to purchase.
“These gentlemen are straight shooters and provided us with a great due diligence package with all the facts needed for our transaction,” Lofland said. “We were able to purchase this dealership in record time with their help and assistance. I would highly recommend Performance Brokerage Services as a buyer’s or seller’s agent.”
Semersky Enterprises has acquired Audi Kirkwood from LeadCar, according to a news release Tuesday from Haig Partners, which advised Semersky on the deal.
Semersky has three Audi stores in the greater Chicago and St. Louis areas.
“We are excited to add Audi Kirkwood to the Semersky family of Audi dealerships and bring our passion for Audi to another great city in the Midwest where we’ve been the leading Audi dealer for over 45 years,” Ernie Semersky, the dealer group’s chief executive officer said in a news release.
“We look forward to working with the Audi Kirkwood team and bringing our best-in-class client experience to the St. Louis marketplace.”
Kevin Nill of Haig Partners added: “We congratulate Ernie Semersky on his acquisition of Audi Kirkwood and the continued expansion of their Audi portfolio. While we normally represent sellers of dealerships, Semersky Enterprises wanted an advisor to help them identify the best fit for their growth strategy, help them analyze the opportunity, and negotiate the deal.
“We are grateful to Ernie and his team for placing their trust in us to help them meet their strategic objectives. This is another transaction demonstrating the confidence buyers have in the future of auto retail and the willingness to grow.”
In what appears to be a growing pattern, a Canadian dealer group has expanded its presence in the U.S. through acquisition.
Steele Auto Group, headquartered Nova Scotia, said Tuesday it has purchased North Start Chrysler Jeep Dodge Ram in San Antonio.
Steele has 56 new-car stores and seven used-car stores. Based in Atlantic Canada, it moved into the Texas market in February 2020 and now operates seven dealerships in the state.
North Star Chrysler Jeep Dodge Ram, which is set to be become Steele North Star CJDR San Antonio, will join Luling Chevrolet, Steele Chrysler Jeep Dodge RAM Gonzales, Steele Chrysler Jeep Dodge RAM Lockhart, Steele Hyundai Kyle, Steele Hyundai New Braunfels and, Steele South Loop Hyundai.
“We are pleased to welcome North Star Chrysler Jeep Dodge Ram to the Group. With our recent growth in the US and Texas, the decision to expand into San Antonio was an easy one,” Steele Auto Group president and chief operating officer Kim Day said in a news release.
“With five other dealerships in the Austin–San Antonio corridor, we know this market and we are very happy with the results thus far.”
In June, Steele purchased Sterling McCall Hyundai South Loop from Group 1 Automotive and renamed it Steele South Loop Hyundai.
Meanwhile, The Dilawri Group of Companies announced in June it purchased Ferrari of Washington and Maserati of Washington, giving the dealership group a presence in D.C. and its first U.S. stores.
AutoCanada added its first-ever Stellantis dealership in the U.S. with the purchase of Crystal Lake Chrysler Jeep Doge Ram in the Chicago area.
On the flip side of that cross-border M&A, Lithia & Driveway, which expanded into Canada last year with the purchase of Toronto’s Pfaff Automotive Partners, increased its Canadian footprint with a purchase announced in May as it acquired Thornhill, Ontario-based Sisley Honda.
Foundation Automotive, which is based in Houston and has stores in both the U.S. and Canada (but mostly U.S.), has entered Tennessee and purchased its first Nissan dealership, as the retailer said earlier this month it has acquired Jones Motor Company and its four dealerships.
The deal also brings the Jones group’s used-car platform into Foundation’s dealerships.
The acquired dealerships are located in the Savannah and Humboldt-Jackson areas of Tennessee and include Jones Buick GMC, Jones Chrysler Dodge Jeep Ram, Jones Chevrolet Humboldt and Jones Nissan.
