Lithia & Driveway showed the depth and diversity of its automotive enterprise via the trio of moves the company announced on Tuesday.
The actions included the acquisition of five stores, an issuance of securities associated with its finance company and the launch of a state-of-the-art customer relationship management (CRM) and workflow platform.
The acquisition allowed Lithia & Driveway to expand its north central footprint with the purchase of five stores from the Wilde Automotive Group in Wisconsin.
According to a news release, the Wisconsin group was started by Harold Wilde in 1966 and includes Wilde Toyota, Wilde Subaru, Wilde Honda, Wilde CJDR and East Towne Honda.
Together, Lithia & Driveway said these stores are projected to generate $625 million in annualized revenue. LAD also expects to complete network optimization (divestitures) of approximately $625 million in annualized revenues in 2022.
Lithia & Driveway highlighted that the pipeline of opportunities to continue network expansion remains “robust, driving LAD to another banner year of growth.”
Lithia & Driveway president and chief executive officer Bryan DeBoer then said in the news release, “We are excited to welcome these high performing teams to our Lithia & Driveway family.
“Their continuous pursuit of excellence has earned them numerous awards including the President’s recognitions for both Honda stores and the Toyota store, as well as excellent reputations for serving their customers and communities,” he added.
Meanwhile, the company said in the same release that Driveway Finance Corp. (DFC) completed its second issuance of securities backed by its originated auto finance portfolio, raising more than $298 million of additional capital to fund growth.
“DFC continues to receive favorable pricing and credit ratings,” Lithia & Driveway vice president of finance Chuck Lietz said. “We’re confident in our ability to fund DFC using a combination of our conduit facilities and securitizations, enabling us to grow DFC in the coming years and support LAD’s achievement of more than one dollar in EPS for each billion dollars in revenue.”
The company shared that DFC originations now account for approximately 10% of LAD’s overall business and are expected to grow to 15% in the coming years.
Executives pointed out this growing income stream further diversifies LAD’s business model, expands profitability, and enhances consumer loyalty with its stores, and its national Driveway and GreenCars brands.
Finally, Driveway activated Freeway, a state-of-the-art customer relationship management (CRM) and workflow platform, empowering its care centers to serve customers more seamlessly and efficiently as they buy, finance, sell, and service their vehicles from the comfort of their homes.
“We are excited to deploy Freeway, our latest strategic platform to further fuel the growth of Driveway and omni-channel capabilities at LAD,” Lithia & Driveway chief innovation and technology officer George Hines said.
“We create competitive advantage by leveraging technology and data to anticipate the needs of our customers. Our Freeway platform empowers our Driveway Care Centers with a unified view of our customer’s journey to meet their needs most efficiently,” Hines went on to say.
J&M Chevrolet, which is located in the Raleigh, N.C., area, has been sold to Dan Miller and Mark Zurales, according to a news release from Haig Partners, which served as the exclusive advisor on the sale.
Carlos Wheeler, a second-generation dealer, is the dealer principal of the store.
“We are blessed to have had the opportunity to provide a well-respected brand to our customers and communities. Our family has been serving the greater Raleigh-Durham area for decades, and it has been fun to watch the area grow. We will miss our customers and serving the community but know that it will continue with Dan and his team,” Wheeler said.
“I am extremely grateful to John Davis and the team at Haig Partners. We could not have done this without them. They are experts in auto retail, run an exceptional process, and their depth of industry relationships was critical in finding the absolute right buyer,” Wheeler said. “We have a smaller dealership and thought the best buyer might be local. But Haig Partners knew this market has been growing rapidly, which made our store more desirable and brought a buyer from out of state who paid a higher value. In addition, they set themselves apart by understanding that this was not just a business transaction for my family and me, but an emotional journey, too.”
Wheeler’s business partner, David Stepp, will remain with the store as general manager. The store will be renamed MZ Chevrolet.
John Davis in managing director with Haig Partners. In the release, he said: “It was an honor to advise Carlos on the sale of his family’s dealership, and I congratulate him on his retirement! It was important to find a buyer who would appreciate what they have built and who would provide the same focus on the customers and communities they have served for so many years. J&M Chevrolet is in the suburbs of Raleigh, which has been growing rapidly. This transaction highlights the tremendous opportunity for smaller dealers in high-growth markets who may not recognize the desirability of their location.”
In a move that became effective Sept. 1, Dealers Auto Auction Group expanded its wholesale footprint in the Southeast by entering the Atlanta market with the acquisition of VIP Auto Auction.
By adding the location at 4600 Browns Ridge Road in Cumming, Ga., DAAG now has nine locations throughout the Southeast.
“We are very excited about the acquisition of the VIP Auto Auction and entering the Atlanta market,” Dealers Auto Auction Group chief executive officer David Andrews said in a news release. “As a premier auction service provider, DAAG listens to our customers and continues to expand DAAG’s ability to provide services and facilities to additional key markets across the United States.”
“DAAG continues to leverage traditional auction venues with new technology to create strong participation and interaction between our In-lane and On-line buyers and sellers,” Andrews continued.
VIP Auto Auction owner and operator Jim Smith has served greater Atlanta area dealers since opening the facility in 2005. According to the news release, Smith will have a partnership interest as well as assuming the role and responsibility of general manager and vice president of DAA Atlanta.
“His knowledge, skill, and experience, combined with DAAG’s processes and economies of scale, will provide auction customers with continued growth and development of competitive automotive markets and services,” DAAG said in the news release.
Smith offered his perspectives about the acquisition.
“David Andrews’ reputation, experience, brand, and his proven team at Dealers Auto Auction Group are a great fit for me and my team to grow,” Smith said. “The timing of this acquisition is great for dealers and commercial clients looking for an auction offering high-level, personalized service in the Atlanta market.
DAAG mentioned that Warren Byrd of Keyscore Consulting was instrumental in putting this deal together. Byrd, a veteran auction industry advocate, spent decades negotiating acquisitions and building auctions in leadership roles with both KAR Global and the National Auto Auction Association.
“The work on the VIP Auto Auction acquisition has been very gratifying, putting two experienced partners together under the Dealers Auto Auction Group,” Byrd said.
Dealers Auto Auction Group was started in 2001, with their first auction in Horn Lake, Miss. In addition to Dealers Auto Auction Atlanta, DAAG’s now nine auction locations in the Southeast also include:
—Dealers Auto Auction of Jackson
—Dealers Auto Auction of Memphis
—Dealers Auto Auction of Murfreesboro
—Dealers Auto Auction of Chattanooga
—Dealers Auto Auction of Huntsville
—Dealers Auto Auction of Mobile
—Dealers Auto Auction of Columbia SC
—Dealers Auto Auction East Tennessee
For more information, visit www.dealersauto.com.
A variety of dealer groups — including Sonic Automotive, Group 1 Automotive, the Lou Fusz Automotive Network, Barnes Crossing Auto Group and Ed Morse Automotive Group — have expanded their businesses in recent days.
We begin with this roundup with Sonic on Tuesday announcing the continued expansion of the EchoPark Automotive brand via the opening of its newest retail hub in Roseville, which is near Sacramento, Calif.
According to a news release, EchoPark Sacramento is the brand’s second location in the Golden State.
To date, EchoPark has 41 retail hubs and delivery centers across 21 states and is continuing its expansion toward a nationwide distribution network that is expected to reach 90% of the U.S. population by 2025.
“We look forward to bringing the best quality pre-owned vehicles and our world class guest experience to residents of the Sacramento area by delivering the EchoPark brand promise of Every Car, Happy Owner,” Sonic chief executive officer David Smith said in the news release. “Our EchoPark retail hubs and delivery centers allow us to serve the growing number of consumers who want to start their automotive shopping experience online but complete their purchase in-person at a dealership.
“The brand’s website EchoPark.com allows for any car to be sold to anyone, anywhere, while expansion of new locations allows EchoPark to be a trusted source for consumers to take delivery close to home,” Smith continued.
Group 1 acquires BMW/MINI franchises in UK
On Tuesday, Group 1 expanded its operations in the United Kingdom with the acquisition of a BMW/MINI dealership and a collision center in the town of Southend, which is located east of London in the county of Essex.
According to a news release, this location is contiguous with several other existing automotive dealerships currently owned and operated by Group 1 in the U.K and increases the company’s U.K. operations to 56 dealerships and 79 franchises.
Group 1 said this acquisition is expected to generate $80 million in annual revenue.
“We are extremely pleased to expand our BMW/MINI footprint to 20 franchises in the U.K.,” Group 1’s U.K. managing director Mark Bridgland said. “Our strong relationship with BMW and our experience in this market area make this a great addition to our group of dealerships.”
Group 1 now has 205 dealerships located in the U.S. and U.K.
Indiana Hyundai & Kia stores gain new owners
Performance Brokerage Services recently announced the sale of Duell’s Evansville Kia and Duell’s Evansville Hyundai of Indiana from Doug Duell and Amish Patel.
According to a news release, the Kia dealership was acquired by Lou Fusz Automotive Network, and the Hyundai dealership was acquired by Joe Marshall and the Barnes Crossing Auto Group.
Performance Brokerage Services highlighted the Duell’s Evansville Kia and Hyundai dealerships are located in the Division Street Auto Plaza, less than half a mile from each other. The Kia dealership had been under Duell’s ownership for more than 40 years, while the Hyundai dealership was acquired by Duell in 2011.
The Kia dealership will remain at its current location at 4000 East Division Street in Evansville and has been renamed Lou Fusz Kia Evansville.
The Hyundai dealership will remain at its current location at 4400 East Division Street in Evansville and has been renamed Hyundai of Evansville.
This transaction was exclusively facilitated by Paul Kechnie and Mark Shackelford, who are the Texas and Midwest partners of Performance Brokerage Services.
The Kia dealership marks the second of its franchise for Lou Fusz Automotive Network.
The group has been serving St. Louis and the surrounding areas since 1952 and has remained family owned and operated for the past 70 years, spanning three generations of Fusz leadership.
Today, Lou Fusz Automotive Network offers 17 brands across 13 dealerships in Missouri, Illinois and Indiana.
Randy Fusz, president and chief executive officer of Lou Fusz Automotive Network, said, “I want to thank Performance Brokerage Services for all the hard work they put forth in the completion of our buy/sell with Duell’s Evansville Kia. Specifically, the efforts by Paul Kechnie and Mark Shackelford made the process smooth, transparent, and led to the successful transition between companies.
“As you know, there are many hurdles to overcome during a buy/sell. Manufacturer applications, asset purchase agreements, property inspections, as well as daily communication between parties are all intricate parts of a successful change of ownership,” Fusz continued. “Paul and Mark provided regular updates, necessary access, and completed requests in a manner that kept the transaction private from frontline dealership employees. Handling sensitive information is vital in a buy/sell, and they did it successfully. Lou Fusz is poised for future growth, and we look forward to working together with Performance Brokerage Services on future transactions.”
The Hyundai acquisition marks the 14th franchise dealership for Barnes Crossing Auto Group.
Established in 2010, the company was formed by the Marshall and Kilpatrick families when they partnered to acquire their first dealership in Tupelo, Miss.
The group has remained family owned and operated and has expanded into Tennessee, Alabama, North Carolina, Louisiana, and Indiana. Barnes Crossing currently owns the largest Hyundai and Mazda dealerships in the state of Mississippi.
Following the sale, Duell said in the news release, “I highly recommend Performance Brokerage Services. Mark Shackelford and Paul Kechnie provided us with professional advice while listing our dealerships for sale. They got us a great deal and also ensured the transaction reached a closing. It is clear they have the connections, knowledge, and experience to create a positive transaction.”
Patel echoed his partner’s sentiments, saying, “Mark Shackelford and the team at Performance Brokerage services are remarkable at what they do. Mark kept me updated on any issues as they came up and handled several obstacles professionally and in a timely manner. Mark made the process of selling two dealerships effortless. Mark is now a dear friend of mine, and I cannot wait to see what’s ahead for us in future dealings. I am a Mark’s customer for life. I would highly recommend Mark and Performance Brokerage to anyone who is considering buying or selling a dealership. You will not regret working with Mark and will also gain a true friend along the way.”
Ed Morse gets into motorcycle business
On Tuesday, the Ed Morse Automotive Group announced acquisitions but within another segment of retailing.
The company said it has acquired Cowboy Harley-Davidson’s three locations in Texas, including the Harley-Davidson retail store located at River Walk in San Antonio.
Cowboy Harley-Davidson’s locations also include Austin and Beaumont as well as another store in San Antonio.
Ed Morse Automotive Group purchased the motorcycle dealerships from Cowboy Harley-Davidson, as George Chaconas with Performance Brokerage Services facilitated the transaction.
“We are excited to add our first motorsport franchises to our growing automotive family. I have a true passion for motorcycles and am proud to continue the growth of these locations. We look forward to making significant capital improvements and supporting the communities of Austin, Beaumont and San Antonio,” said Teddy Morse, chairman and CEO of Ed Morse Automotive Group.
“The enhancements that we will bring will be beneficial to the success of the incredible employees there, but also providing our customers a world-class motorcycle-buying experience,” Morse continued in a news release.
The Ed Morse Automotive Group is headquartered in Delray Beach, Fla., and has been family owned for more than 75 years.
According to the news release, these acquisitions will add nearly 140 employees to its over 1,800-employee base, and will grow Ed Morse Automotive Group to 34 dealerships, 69 franchises, 38 locations and 18 automotive and motorcycle brands.
In separate news releases, Performance Brokerage Services highlighted its recent involvement with other motorsports transactions.
Performance Brokerage Services announced the sale of Star City Motorsports of Lincoln, Neb., from Robert Kay to John Elway Powersports, and the sale of Platte River Harley-Davidson in Grand Island, Neb., from Robert Kay to Steve and Jeff Hinchcliff.
Performance Brokerage Services also announced the sale of Red Bluff Motorsports in California from Robert and Lori Carrel to Benny Brown and Paul Sutfin.
Another acquisition announcement surfaced on Tuesday, this time in the training space.
NCM Associates said it has acquired Sioux Falls, S.D.-based Spader Business Management and its subsidiary, A World of Training, in a move that was effective on Aug 31.
According to a news release, this action furthers NCM’s growth, diversification and client support in various industries.
With this merger, NCM — which claims to be the originator of the first automotive 20 group in 1947 — said it will further expand its footprint of products and services into several non-automotive industries while maintaining one of North America’s largest databases of financial data and operational metrics.
NCM president and chief executive officer Paul Faletti said, “Building off the foundation established by his father and Spader Business Management founder Duane Spader, John Spader has built an enviable business built on a culture of trust. The employees of NCM are honored to have the opportunity to partner with their talented associates and their outstanding roster of clients.”
With 45 years of experience, Spader Business Management has established itself as one of the premier 20 group and training providers within the RV, farm equipment, powersports, marine and motorcoach spaces among many other industries.
John Spader said, “Merging the resources of Spader Business Management with those of NCM will allow for us to accelerate the execution of many of our planned strategies. We feel the combined organizations will bring many great resources and offerings to our clients that would not have happened independently.”
NCM and Spader Business Management intend to maintain business as usual as both organizations identify synergies and opportunities to enhance the associate and client experience.
John Spader will join the executive leadership team of NCM Associates managing Spader Business Management operations while the corporate office and state-of-the-art training facility will remain in Sioux Falls.
For more information about NCM Associates, visit www.ncmassociates.com or email info@ncmassociates.com.
This week, two of the publicly traded dealer groups made moves, as Sonic Automotive acquired another store, and Group 1 Automotive shared an announcement for its shareholders.
And another former star with the New York Yankees is opening a Honda dealership.
On Wednesday, Sonic announced it has acquired Audi Owings Mills, marking the company’s eighth Audi franchise and 112th franchised dealership overall.
Located in Owings Mills, Md., Sonic said the dealership serves residents of the greater Baltimore area and surrounding regions with a wide selection of new and pre-owned Audi vehicles and manufacturer-authorized parts and service.
“With the acquisition of Audi Owings Mills coming on the heels of our acquisition of Volkswagen of Fallston last year, we look forward to continuing to serve guests in the Baltimore metropolitan market and beyond with our world class guest experience, quality vehicles, and competitive pricing,” Sonic chief executive officer David Smith said in a news release.
Sonic president Jeff Dyke added, “We are excited to once again expand our national franchise sales and service network. The acquisition of Audi Owings Mills allows us to continue delivering on the Audi brand promise and provide our guests with even more choices in the Maryland market.”
Group 1 share repurchase & quarterly cash dividend
In other news, Group 1 announced on Tuesday that its board of directors increased the company’s common stock repurchase authorization by $130 million to $250 million and declared an increase to the quarterly cash dividend.
The company also updated its year-to-date repurchase activity of 1,546,856 shares of common stock at an average price of $176.80 for a total of $273.5 million, which represents 9.0% of Group 1’s outstanding share count as of Jan. 1.
Group 1 explained that purchases may be made from time to time, based on market conditions, legal requirements, and other corporate considerations, in the open market or in privately negotiated transactions.
The company said it expects that any repurchase of shares will be funded by cash from operations. Repurchased shares will be held in treasury, according to Group 1.
Furthermore, Group 1’s board of directors also declared a cash dividend of $0.38 per share for the second quarter. The company said the dividend represents an increase of 2.7%, or $0.01 per share, from the first quarter.
Group 1 indicated the dividend will be payable on Sept. 15 to stockholders of record as of Sept. 1.
“Our strong cash flow and balance sheet continues to enable significant capital deployment in 2022. Growing our U.S. and U.K. businesses while also returning capital to our shareholders remain our top capital allocation priorities,” said Earl J. Hesterberg, president and chief executive officer Group 1, which operates 204 dealerships located in the U.S. and U.K.
Rivera Honda set for grand opening
Mariano Rivera is looking to close in a different way.
The Major League Baseball Hall of Famer who was the closer during several championships won by the New York Yankees is ready to celebrate the grand opening of Mariano Rivera Honda located in Port Jefferson Station, N.Y.
“I’m excited to bring my business to the Port Jefferson Station community. As a native New Yorker, it means a lot to be able to get involved with the area and give back to the state I was raised in,” Rivera said in a news release.
As part of the grand opening celebration on Saturday, Rivera Honda will offer all Honda owners one complimentary car wash when they visit the dealership, as well their first oil change for free.
To show its love for the Port Jefferson Station community, the dealership will also hold drawings to give away a three-year lease and three years of vehicle service.
Dealer principal Kenny Hicks added, “Celebrating our grand opening has been a long time coming. We can't wait to provide the community with an unbeatable car buying experience.”
Another former Yankees Hall of Famer also got into the car business with a Honda dealership.
In January, Reggie Jackson teamed with Hendrick Automotive to open Reggie Jackson Airport Honda in Raleigh, N.C.
Mergers and acquisitions now have involved one of the notable operations associated with collectable cars.
On Thursday, IMG, an Endeavor company and a global leader in events, media, sports and fashion, announced that it has acquired a majority stake in Barrett-Jackson, one of the premier collector car auction and live events companies.
The companies said through a news release that this investment comes at a time when enthusiasm around collector cars and live events, demand for auto-related content and collector car prices are at a record high — and as car collectors are increasingly trending younger.
Barrett-Jackson was founded in 1971 by Tom Barrett and Russ and Nellie Jackson, who are the parents of chief executive officer Craig Jackson.
Since Craig Jackson took over the business in 1995, Barrett-Jackson said it has been at the forefront of innovation, from the introduction of the popular no reserve auction format and broadcasting of its bidding and events to more than 200 territories via A+E Networks, to developing best-in-class proprietary technology and expanding beyond classic cars.
More recently, the company entered the online car listings and auction business through its acquisition of the Collector Car Network (CCN), the parent company for ClassicCars.com and AutoHunter.com, which garner more than 5 million monthly online visitors.
Barrett-Jackson’s events and high-energy auctions in Scottsdale, Ariz., Las Vegas, Palm Beach, Fla., and Houston attract many of the world’s most prominent auto collectors, fans and celebrities, as well as millions of TV viewers, and see annual sales of more than 3,600 cars at no reserve.
Its flagship Scottsdale event, founded in 1971, auctions highly sought-after and valuable automobiles and annually welcomes more than 300,000 attendees, making it one of the oldest and largest collector car auction events in the world.
IMG, which owns, operates and commercially represents hundreds of events around the world, including Frieze art fairs, the Madrid and Miami Open tennis tournaments, Formula Drift, and New York Fashion Week: The Shows, will serve as Barrett-Jackson’s strategic partner, according to the news release.
The announcement went on to mention Craig Jackson and his Scottsdale, Ariz.-based team, including president Steve Davis, will look to leverage IMG and Endeavor’s global network and expertise in building world-class event experiences and brands to further enhance and grow the business.
“We have long been admirers of Barrett-Jackson and have seen first-hand the scale, excitement and 50 years of tradition surrounding their events,” Endeavor chief executive officer Ariel Emanuel said in the news release. “Like IMG, Barrett-Jackson is a pioneer of its industry, and we look forward to working with Craig and his team to build on its impressive legacy across categories including experiences, hospitality, content, marketing and partnerships.”
Craig Jackson said, “Pairing Barrett-Jackson with the unique power of the Endeavor network is an unparalleled opportunity for our company, immediately opening doors to amplify and accelerate the growth of Barrett-Jackson as a global lifestyle brand.
“I couldn’t be more excited to have the best partner as we look to optimize our fan experience and create new touchpoints for car enthusiasts around our live events and media offerings,” Jackson went on to say.
And Davis echoed similar sentiments, saying: “After more than 25 years with Barrett-Jackson, I can’t wait for this next chapter for our customers. We’ve built something incredibly special and with the expertise and relationships of IMG, Craig and I look forward to elevating our offering and attracting a whole new generation of fans.”
Moelis & Co. served as exclusive financial advisor to Barrett-Jackson. Eisner, DLA Piper and Perkins Coie acted as legal advisors to Barrett-Jackson.
Latham & Watkins acted as legal advisor to Endeavor.
This week’s update involving mergers and acquisitions of dealerships covers two unique parts of retailing — luxury sedans and SUVs as well as big rigs to move goods.
The Presidio Group said it advised Scott Biehl on the sale of the Jaguar Land Rover Los Angeles dealership franchises to US Auto Trust.
And Performance Brokerage Services announced the sale of Volvo Trucks of Palm Beach, Fla., from the DeSanti family to Nacarato Truck Centers.
According to the release from the Presidio Group, US Auto Trust also owns Jaguar Land Rover San Jose and Jaguar Land Rover Newport Beach and recently acquired Cadillac Pasadena and Land Rover Pasadena.
Jaguar Land Rover LA is the No. 1 volume Jaguar Land Rover store in the Los Angeles market. California is both the largest retail auto market in the U.S. and the leader in luxury sales. The luxury segment gained market share in first quarter of 2022 compared to the same period last year, according to the California New Car Dealers Association.
“We are excited to expand our Jaguar Land Rover holdings in California, a huge luxury brand market,” US Auto Trust President Matt Kaiser said in the release. “The Presidio Group understood this strategic acquisition fit perfectly with our growth strategy and it was a pleasure to once again work with them. We welcome the JLR LA team members to the US Auto Trust family and look forward to building on the foundation Scott and his team have built with this business and in the community.”
Biehl shared his perspectives about making this deal.
“After building a new state-of-the-art dealership and growing this business into one of the largest Jaguar Land Rover dealerships in the country, I wanted to find a buyer that would continue to support our employees and the local community,” Biehl said. “I have known George Karolis, president of The Presidio Group, for many years and had confidence that he and his team would fulfill all of our objectives. I could not be more pleased with the outcome.”
Richard Rasmussen, a partner with Lagerlof, LLP, served as legal counsel to the seller. Timothy Robinett, a partner with Manning, Leaver, Bruder & Berberich, LLP, served as legal counsel to the buyer.
“We were honored to work with Scott Biehl on the strategic sale of Jaguar Land Rover Los Angeles,” Karolis said. “Finding the ideal buyer for these franchises, one that allowed Scott to meet his financial and personal goals, was our aim, and with US Auto Trust we succeeded.”
Meanwhile on the opposite side of the country, Volvo Trucks of Palm Beach has been owned and operated by the DeSanti family for more than 62 years, according to news release from Performance Brokerage Services.
Established as a full-line GMC dealership in 1960, the business was awarded the Volvo Truck franchise in 1988, followed by AutoCar in 1998. The dealership moved to a newly built facility in 2002 where it resides today.
“After decades of operating as a family business, we started to look towards retirement, and wanted a new family to take over and grow the business,” Volvo Trucks of Palm Beach president Leonard DeSanti said in the news release.
“We chose Mike Nacarato and the Nacarato Truck Centers team because we felt like they were going to be the best fit for our employees and customers,” DeSanti continued. “My brothers and I met with Mike personally just as the process began. Mike and his team have built a great company, and we know our community will benefit from Nacarato Truck Centers as its newest business.
“Lloyd Baldridge, CFO of Nacarato Truck Centers, has been instrumental in working with our team to ensure a smooth transition. There are many good days ahead for the customers in our area,” DeSanti went on to say.
The dealership will remain at its current location at 360 South Military Trail in West Palm Beach, Fla.
Nacarato Truck Centers is a group of authorized Volvo Truck, Tico Terminal Tractor, Strick Trailers, Dorsey Trailer and used truck dealerships and service centers, serving Tennessee, Virginia, southern Kentucky, Maryland, Illinois and Georgia.
The company began as a single dealership in Nashville, Tenn., and has expanded to 12 locations. With 46 years in the trucking industry, the company has been led by three generations of the Nacarato family.
“The addition of the Palm Beach dealership is a great fit for our company,” Nacarato Centers president Mike Nacarato said. “We look forward to working with the excellent employees at the dealership and know that each of them will play a big part in its continued success. We want to support and enhance our relationships with existing customers and have every intention of introducing ourselves to as many new potential customers as possible in the days ahead. The Nacarato team looks forward to making a positive impact in the Palm Beach community for many years to come.”
AutoWeb said Monday it has entered a deal to be acquired by a subsidiary of One Planet Group in a cash deal priced at $0.39 per share of AutoWeb.
One Planet Group chief executive officer Payam Zamani will become AutoWeb’s president and CEO. Jared Rowe will transition out the company.
Zamani was the co-founder and CEO of AutoWeb from 1994 to 1999. Autobytel acquired AutoWeb in 2015, and would change its name to AutoWeb in 2017.
“Not many founders get the opportunity to return to a company that they helped create. AutoWeb has been a pioneer in the online automotive industry and in many ways directly influenced its evolution,” Zamani said in a news release. “It is now time for the company to experience an evolution to prepare for the challenges and the opportunities in the automotive industry of tomorrow.”
Rowe had been president and CEO of AutoWeb since 2018, following time with FordDirect, Cox Automotive and YP Holdings. Rowe also had a previous post with what was Autobytel at the time.
Explaining more about the deal, the company said the transaction is set up a merger with two steps, “with the first step being a tender offer for all issued and outstanding shares of AutoWeb by the purchaser and the second step being a merger in which any shares of AutoWeb that were not tendered in the tender offer would be converted into the right to receive the same cash price per share as stockholders who tendered in the tender offer.”
The companies agree to begin the tender offer by Monday of next week.
Bain Capital, along with a wholly owned subsidiary of the Abu Dhabi Investment Authority, have entered a definitive agreement to buy Merchant Automotive Group, which does business as Merchants Fleet and Merchants Auto.
The deal was announced Thursday by Merchants.
The company said in a news release that Merchants’ leadership team will retain their current positions and will be co-investor in the business.
Merchant chief executive officer Brendan Keegan will add the titles of president and chairperson, as well.
“The growth Merchants has achieved over the past five years is unrivaled in the industry, and the new ownership group—Bain Capital, ADIA and our leadership team—share a steadfast commitment to keep our clients on the cutting edge of commercial fleet through continued innovation,” Keegan said in a news release.
“The infusion of new capital affirms the merits of our core values and disruptive approach. While other providers grapple with the effects of a consolidating market—business interruption, systems integration, confusion and employee impacts—Merchants moves forward fearlessly at the vanguard of fleet and mobility with best-in-class solutions for fleet electrification, fueling technology and last mile. There’s never been a better time to work for, or work with, Merchants.”
Gary Singer is the outgoing chairman and owner of the company.
“Since my father Irving Singer founded Merchants in 1962, we have grown alongside our clients through innovation and developing new service offerings,” he said. “Today’s news reflects decades of industry leadership and a remarkable transformation over the past four years, while also setting the stage to accelerate the forward trajectory that is well underway.
“As my brothers — Robert, Jeffrey, & Michael — and I step away, we are incredibly proud of what has been achieved and excited to pass the reins to the new ownership group. Merchants has the right team and management in place, the right partners in Bain Capital and ADIA, and the determination and grit to forge an exciting future.”
The company will continue to operate independently.
The transaction’s terms were not disclosed. It is expected to close in the third quarter.
“When we initially provided growth financing to Merchants in 2020, we had our eye on a longer-term partnership,” said Olof Bergqvist, a Bain Capital managing director, said in a news release. “As the fleet management industry continues to experience considerable disruption, we are excited to continue to support Brendan and the Merchants team on their path of consistent long-term growth driven by connected vehicles, multi-modal transportation, efficiency requirements and data-driven intelligence.”
Julia Levinson, a vice president at Bain Capital, added: “Merchants is at the forefront of electric vehicle expansion as more companies look to improve their ESG performance.”
