Lithia & Driveway has expanded to Kentucky with its latest purchase.
The dealer group announced Tuesday it has purchased Glenn’s Freedom CJDR in Lexington, the 33rd store Lithia has acquired in 2022.
Lithia anticipates the dealerships will generate annualized revenues of more than $140 million. The near three dozen stores Lithia has purchased this year are projected to pull in $3.5 billion in annualized revenues.
“With the addition of Glenn's Freedom CDJR, we continue to build out our physical network and expand consumer optionality within our omni-channel strategy,” Lithia president and CEO Bryan DeBoer said in a news release. “Their pursuit of excellence and performance-driven culture make them an ideal fit into the Lithia & Driveway family.”
Elsewhere, one particular move continued the international expansion in retail automotive M&A. Frank Motors Group has sold Frank Toyota and Frank Subaru in National City, Calif., to Mexico-based The Dalton Corporation, according to a news release from Performance Brokerage Services announcing the deal.
The automotive division of Dalton includes 22 dealerships in Mexico City, Guadalajara and San Luis Potosi.
These are Dalton’s first stores in the U.S.
The stores will remain at their current locations and be renamed Dalton Toyota and Dalton Subaru.
Group 1 Automotive said Monday it has purchased three dealerships and a collision center in Shreveport, La., from Holmes European Motors.
The stores include Mercedes-Benz, Sprinter, Land Rover, Jaguar and Volvo franchises, adding to Group 1’s existing portfolio in the city, which include Ford and Lincoln franchises.
Group 1 expects the dealerships will generate annual revenues of $110 million. With this purchase, the retailer has now acquired revenues of $660 million in 2022.
“We are extremely pleased to welcome the teams at Mercedes-Benz, Jaguar-Land Rover and Volvo Cars of Shreveport to the Group 1 family, and to further expand our brand footprint and scale to our already successful Shreveport operations,” said Daryl Kenningham, Group 1's President of U.S. Operations, in a news release.
During the second quarter, the retailer disposed of two franchises — a Hyundai franchise in Houston and a Volkswagen franchise in Boston — which generated annual revenues of $75 million.
Additionally, Group 1 Automotive has exited Brazil.
The dealer group said last week it has closed on the disposition of its operations in the South American country, after nine years there.
Group 1’s wholly owned subsidiary GPI SA, LLC closed the sale under the share purchase agreement with Original Holdings S.A.
UAB Motors Participações Ltda., which is a wholly owned subsidiary of the Houston-based dealer group, was an intervening party.
Alan Jay sells stores to Doherty, Qvale
Alan Jay Automotive Network has sold its Alan Jay Toyota in Sebring, Fla., to Doherty Automotive Group of Lakeland, Fla.; it also sold its Maserati & Alfa Romeo of St. Petersburg, Fla., to Qvale Auto Group of West Palm Beach, Fla.
The news was announced by Kerrigan Advisors, which represented the Alan Jay group.
“Throughout this transaction, the Kerrigan Advisors team was professional, diligent, and insightful, always putting our interests front and center,” said Alan Jay Wildstein, who is the founder, president and chief executive officer of Alan Jay Automotive Network. “For 30 years we’ve operated under a simple philosophy — treat customers like family. So, I appreciated being represented by a firm who shares that philosophy and who treated us with the same kind of care and dedication.”
Fuccillo Automotive Group has sold its Fuccillo Kia of Clermont dealership in the Orlando, Fla.-area to Florida-based Morgan Automotive Group, according to a news release from Kerrigan Advisors, which represented Fuccillo in the sale.
Morgan Automotive Group has 53 Florida dealerships throughout Tampa, Gainesville, Ocala, Lake City, Jacksonville, Sarasota, Naples, Fort Myers, Brandon, New Port Richey, Orlando and surrounding areas.
“Florida dealerships are among the highest volume and most profitable in the nation,” Kerrigan Advisors vice president Gabe Robleto said in a news release. “Given that fact, we were humbled to once again advise the Fuccillo family, this time on the Fuccillo Kia of Clermont transaction. We’re proud of the work we’ve done in helping the family monetize over 30 years of dedication, hard work and community investment.”
Company founder and managing director Erin Kerrigan said: “Representing the Fuccillo organization again was a real honor. Demand for dealerships remains at record high levels given the industry’s robust profitability and attractive business model. Kerrigan Advisors expects 2022 to be at or above 2021’s record level for transactions, as valuations remain high and dealers continue to allocate record amounts of capital to acquisitions.”
Next up, Geaux Automotive Group has purchased Hatcher Chevrolet Buick GMC in Brownsville, Tenn., from Donnie Hatcher, according to a news release from Performance Brokerage Services.
In another deal involving that brokerage firm, the company announced that Hummel’s Nissan of Des Moines, Iowa has been sold to Willis Automotive.
Owner Mark Hummel said in a release, “Paul Kechnie of Performance Brokerage Services was instrumental in getting the deal to the finish line. He was able to provide detailed insight as to what would be expected. Through the selling process, he was attentive, responsive, and always available. I am very happy with the transaction and services provided by Paul and Performance Brokerage Services.”
Group 1 Automotive said Monday it has acquired Larry H. Miller Toyota in Albuquerque, N.M., adding to the retailer’s presence in the Land of Enchantment.
The store will be renamed Sandia Toyota and is expected to pull in annual revenues of $115 million. So far this year, Group 1 has acquired revenues of $550 million.
The store is Group 1’s 17th Toyota dealership in the U.S. and adds to its existing New Mexico portfolio, which had eight franchises prior to this deal.
“We are pleased to welcome the team at Sandia Toyota to the Group 1 family. The ability to add another strong Toyota franchise to our U.S. portfolio and add scale to our successful New Mexico operations is a very positive growth action for our company,” said Daryl Kenningham, Group 1's president of U.S. operations, in a news release.
Moving over to Iowa, Toyota of Iowa City has been purchased by the McGrath Family of Dealerships, a group based in Cedar Rapids.
That’s according to a news release from Haig Partners, which advised brothers Mark and Jim Dreusicke, the sellers in this deal.
“Our family business has long-standing ties to our co-workers and the communities in which we do business, which meant finding the right buyer that would continue this level of partnership,” Mark Dreusicke said in the release. “We interviewed several buy-sell advisors and decided that Haig Partners was best positioned to guide us and achieve our goal of a confidential transaction and seamless transition for our team.
“Kevin Nill and the team at Haig Partners understood our concerns and expertly managed the sale process, allowing Jim and me to concentrate on running the dealership. We are grateful for their customized approach that maximized the value of our organization and Kevin’s engagement throughout the transaction.”
Nill, of Haig Partners, added: “The record-breaking profits dealers are experiencing, along with the ongoing transition away from the traditional customer retail experience, has many dealers evaluating an exit strategy. The demand for the Toyota brand in all markets and the reputation the Dreusicke’s built with Toyota of Iowa City made it a highly attractive opportunity for the buyer.”
Pat McGrath is dealer principal of the McGrath Family of Dealerships. In the release, McGrath noted: “We are humbly grateful for the opportunity to expand our team to include an extremely talented group of professionals with a shared commitment to delivering an unsurpassed experience for our guests. This acquisition not only broadens the availability and range of our services to the public, it enriches our culture as a company with increased expertise and opportunity.”
Sonic Automotive’s $700 million deal to purchase RFJ Auto Partners, announced in September, is the Charlotte, N.C.-based retailer’s largest acquisition ever and among the retail auto industry’s most significant transactions to date.
But beyond the additional revenues and expanded geographic footprint from adding RFJ Auto — which are outlined in this previously reported story — the transaction has some perks for Sonic’s growing used-car business, chief financial officer Heath Byrd said in a late October interview.
One way in which that opportunity comes to fruition is through …
Read more
Tasca Automotive Group has purchased two Buick GMC dealerships in Florida from the Norris family, according to an announcement from The Presidio Group, which advised the sellers.
Tasca owns another Buick GMC store in Melbourne, Fla., in addition to several stores throughout the Northeast and Midwest. The purchase of Buick GMC Palm Harbor and Buick GMC Clearwater expands the retailer’s presence in the Sunshine State.
“Florida is one of the most sought-after markets in the U.S. and we were excited to work with Dick and Doug Norris to find a buyer for these highly desirable dealerships,” The Presidio Group president George Karolis said in a news release.
“With this transaction, Presidio has advised on transactions involving 81 dealership franchises in 2021 and we have an active schedule for the remainder of the year. The dealership M&A market is on fire,” Karolis said.
Doug Norris, the principal of the two stores, added: “The Presidio Group served as a trusted strategic advisor in helping my family diversify our portfolio of assets for the future. The entire process was seamless. Presidio identified the right acquirer for our stores, enabling us to focus on other business interests. They did so professionally and exceeded our expectations.”
Carl Tasca, Jr. is the vice president of his family’s dealer group. Commenting on the purchase, he said: “We were looking to grow our presence in the thriving Florida market and were thrilled when the experienced team at The Presidio Group approached us about this strategic acquisition.
“These dealerships are a perfect complement to our existing Buick and GMC franchises in Florida. We welcome the teams to the Tasca family and look forward to serving their loyal customers with integrity and honesty.”
Del Grande Dealer Group has added another Hyundai dealership to its footprint in Northern California.
Del Grande has brought in Fremont Hyundai, formerly known as Hanlees Fremont Hyundai, to its lineup.
This store, located in Fremont, augments the dealer group's existing lineup of 14 brands and 12 dealerships. The dealership brings the company's employee headcount to more than 900 team members.
Chief executie officer Shaun Del Grande said in a news release: "Hyundai has been a terrific partner for many years and the addition of Fremont Hyundai will be a great complement to our dealerships in the East Bay, as well as the entire dealer group. We are incredibly excited about the DGDG growth strategy and our continued journey with the amazing brand of Hyundai."
This is the third Hyundai store in the group's lineup, as it joins Capitol Hyundai in San Jose and Team Hyundai in Vallejo, Calif.
The store will employ the dealer group's "No Brainer Checkout" technology, which combines an online and in-store car-buying experience for its lineup of new and used Hyundai vehicles. (Read more on Del Grande's digital retailing efforts, which is designed to be a personal concierge to help users through their entire vehicle-buying journey.)
"Taking exceptional care of our team and our guests has been our top priority over the past decade," said Del Grande. "Fremont Hyundai will be another great representation of our DGDG core values."
Two of the nation’s publicly traded dealership groups announced respective acquisitions Monday, including one with a price tag in the hundreds of millions of dollars.
Group 1 Automotive has entered a deal to buy Prime Automotive Group’s 30 dealerships and three collision centers in a deal that’s expected to be for $880 million.
Meanwhile, LMP Automotive Holdings has reached a deal to acquire an 85% stake in Alan Jay Automotive Network. That transaction, which includes the associated real estate as well, has an aggregate purchase price of roughly $50 million for goodwill and an aggregate real estate purchase price of approximately $44.1 million.
LMP also announced that it also entered a deal to buy five import-brand dealerships in Texas along with the associated real estate. LMP did not share the name of the stores or group, but noted the aggregate purchase price was roughly $62.5 million for goodwill and has an aggregate real estate purchase price of about $55 million.
As for the Group 1 purchase, Prime has 30 dealerships and three collision centers throughout the Mid-Atlantic and New England.
Its franchises include Acura, Airstream, Audi, BMW, Buick, Chrysler, Dodge, Ford, GMC, Honda, Jeep, Land Rover, Mazda, Mercedes-Benz, MINI, Porsche, RAM, Subaru, Toyota, Volkswagen and Volvo.
It is headquartered in Westwood, Mass., and its stores pulled in $1.8 billion in revenues last year and retailed more than 52,000 vehicles.
“Group 1 has successfully operated in the Northeastern U.S. for many years. We are pleased to have this opportunity to leverage our existing cost structure and to further diversify our U.S. footprint,” Group 1 president and chief executive officer Earl Hesterberg said in a news release.
Added Daryl Kenningham, who is Group 1’s president of U.S. and Brazilian operations: “We know Prime's markets well and the opportunities they represent. We are also proud to welcome Prime Automotive’s 1,800 employees as new teammates to the Group 1 family.
“The addition of Prime Automotive enables us to extend our reach of AcceleRide, Group 1’s industry leading digital retailing process, to even more customers,” he said.
Moving over to LMP’s purchases, the Alan Jay group has 12 stores in Florida. The acquisition of the 85% stake is expected to generate $345 million in annualized revenues and adjusted EBITDA of $18.3 million.
The purchase is likely to close in the fourth quarter.
“First, I would like to welcome Alan Jay Wildstein, Michael Witham and James Lizotte to the LMP organization. Upon close, Alan Jay Wildstein will be regional vice president at LMP, partner, as well as dealer operator of the acquired dealership group,” LMP chief operating officer Richard Aldahan said in the release.
“Michael Witham will continue to be the group’s chief operating officer, along with James Lizotte who will be vice president of operations, each of whom have over 30 years’ experience in the automotive industry. I look forward to working with each of them in our future partnership. This acquisition will further expand our management team and Southeast footprint. We intend to continue expanding aggressively in this region as we are seeing a record amount of interest in our dealer partner model.”
Aldahan added: “The operating assets to be acquired include one pre-owned center and 21 new vehicle franchises consisting of: one Buick, one Cadillac, two Chevrolet, one GMC, two Chrysler, two Dodge, two Jeep, two Ram, two Ford, one Lincoln, one KIA, one Nissan, one Toyota, one Maserati and one Alfa Romeo.”
LMP CEO Sam Tawfik said: “This acquisition, combined with our previously announced acquisitions, brings LMP’s total franchise and dealership count to 51 and 35, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $1.6 billion, $104 million, and $9.32, respectively.”
Tawfik added: “I also would like to welcome Alan Jay Wildstein and his team to the LMP organization. We are honored to have Mr. Wildstein as regional vice president of LMP.”
Next up, LMP’s Texas purchase is expected to close in Q4. It is anticipated that deal will add about $592 million in annualized revenues and adjusted EBITDA of $35 million.
Aldahan, the LMP COO, said: “This acquisition will further expand our management team and footprint in the central region. This will be the final acquisition we expect to close this year, which completes our Stage 2 acquisition plan. All future perspective acquisitions we expect to consolidate in our Stage 3 plan for closings in 2022.”
Tawfik, the LMP CEO, said: “Upon closing this acquisition, combined with our previously announced acquisitions, LMP’s total franchise and dealership count will be 56 and 40, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $2.2 billion, $137 million, and $12.27, respectively.”
Lithia & Driveway has extended its footprint to Mississippi through the purchase of Toyota of Jackson, the dealer group said Tuesday.
Lithia expects the dealership to bring in annualized revenues of $95 million.
Since announcing a five-year plan in 2020, Lithia is now at $7.6 billion in total expected annualized revenues acquired.
“We are excited to complete our first year of the five-year plan to reach $50 billion in revenue and $50 of earnings per share well beyond expectations,” Lithia president and chief executive officer Bryan DeBoer said in a news release.
“Our growing presence in the Southeast region strategically enhances our nationwide network that is foundational to Lithia and Driveway conveniently serving customers throughout the entire vehicle ownership lifecycle,” he said.
Lithia financed the purchase with existing on-balance sheet capacity.
“We welcome one of the strongest new vehicle businesses in Mississippi and the team to the LAD family,” DeBoer said.
In other news from the dealership group Lithia has sold its Audi Valencia in store in California to Ghreiwati Auto Group..
The latter is a Southern California dealership group that owns Surf City Nissan and Corona Nissan, and is helmed by dealer principal Issam Ghreiwati.
Kerrigan Advisors, which advised Lithia on the transaction, shared news of the deal in a release Tuesday.
“We were proud to work with the quality team at Lithia Motors again, this time representing them in a sale of a valuable dealership,” founder and managing director Erin Kerrigan said.
“Our familiarity with the California auto retail market, the largest in the country, and our previous experience with the largest transactions in the state, meant we were well-positioned to identify the ideal buyer for Audi Valencia. Ghreiwati Group has a strong record of success in Southern California with Surf City Nissan and Corona Nissan, and their commitment to both employee and customer service excellence is well-aligned with Audi’s goals,” Kerrigan said.
DeBoer, the Lithia CEO, said in the release, “Our experience working with Kerrigan Advisors on a number of transactions over the past five years has been very positive, and we appreciated the exceptional support from their team as we completed this divestiture.
“Kerrigan Advisors’ extensive buy/sell experience, particularly in the complex Southern California market, helped ensure that this transaction was seamless for our team.”
