The National Auto Auction Association put in its bid and now has an acquisition coming down the lane.
NAAA has purchased the World Automobile Auctioneers Championship from Paul Behr, announcing the deal at the 2022 WAAC event in Des Moines, Iowa.
Behr has owned WAAC since 2005.
The event brings in the nation’s top auctioneers annually for its annual competition, which celebrates “the very best of automobile auctioneering,” NAAA said.
“NAAA understands how important auctioneers and ring people are to our member auctions and the work they put in to ensure successful sales,” NAAA president R. Charles Nichols said in a news release. “I would like to thank NAAA’s executive officers and board of directors for their support and recognition of the significance of this event to our industry.”
NAAA chief executive officer Tricia Heon added: “This premier event highlights the importance of the auctioneer profession every year. This is an exciting partnership for NAAA and aligns with the goals of our Workforce Initiative to assist our industry in recruiting skilled and talented employees.”
Here’s more industry consolidation; this time in the fleet space.
A news release from Athene Holding distributed on Monday announced the signing of a stock purchase agreement by LeasePlan Corp. with Wheels Donlen’s parent company to acquire LeasePlan USA.
The result will be the combination of LeasePlan USA with Wheels Donlen to create a unified fleet management business.
The companies highlighted this combination creates a “strong competitor in mobility,” which will allow Wheels Donlen and LeasePlan USA to provide enhanced solutions to corporate fleets.
“Benefitting from added scale, materially increased investment capacity, and differentiated capabilities, the combined company will be better positioned to service customers and facilitate growing trends towards electric vehicles and digital technologies,” Athene said in the news release.
“With $246 billion of assets, Athene will be well positioned to provide the combined company with deep capital support for its go-forward businesses to offer clients an enhanced suite of solutions across fleet, last-mile delivery, trucking, and equipment,” continued Athene, which is the lead investor in LeasePlan Corp.
The firm said the transaction is expected to close by the end of the year and is subject to customary closing conditions including regulatory approvals.
According to the news release, both the management team and board of directors will include representatives from Wheels Donlen and LeasePlan USA.
LeasePlan USA chief executive officer Matt Dyer will become a senior executive and board member of the combined company.
“The subscription megatrend and the digital revolution mean the U.S. leasing market is about to enter a period of accelerated growth and transformation. By joining forces with Wheels Donlen, LeasePlan USA will have the scale and investment firepower necessary to serve its growing customer base and accelerate the future of mobility for American drivers,” LeasePlan CEO Tex Gunning said in the news release.
“We are very proud of the business we have built-up in the US and are confident our colleagues will achieve every success as they put full focus on the unique US market,” Gunning continued.
Additionally, as part of this transaction, LeasePlan USA and LeasePlan Corp. will enter into a cooperation agreement to deliver global fleet management services to both companies’ international clients following the completion of the transaction, ensuring the full availability of the global fleet solutions for clients.
Likewise, the existing global alliance between Wheels Donlen and ALD will continue, according to the news release.
“LeasePlan has built a terrific business in the US that we are excited to integrate with the Wheels Donlen platform, adding complementary capabilities that will provide clients with an even broader suite of mobility solutions,” Wheels Donlen CEO Shlomo Crandus said.
“We look forward to working with Matt and welcoming the LeasePlan USA team to the Wheels Donlen family and together we will continue enhancing our best-in-class platform and providing our clients unsurpassed fleet management results,” Crandus went on to say.
Dyer offered these perspectives about all of the developments.
“LeasePlan USA is a growing force in the US market and now, as part of Wheels Donlen, we have the opportunity to expand our mobility platform. We are very excited about the future with a strong and diversified business that is poised for further growth in fleet management, leasing and financing for corporate fleets, last-mile delivery, trucks, as well as equipment and material handling,” Dyer said.
“In addition, thanks to our cooperation agreement with LeasePlan, customers with fleets outside the U.S. will continue to access the high-quality international fleet management services they have come to expect. I’m proud of our employees who have worked so diligently to build the business we have today and who will help us reach our next stage of development in partnership with Wheels Donlen,” he went on to say.
Jim Belardi is CEO of Athene.
“For Athene, this transaction follows our longstanding strategy to invest in businesses with strong fundamentals, underwriting and direct origination capabilities. We have high conviction in the growing mobility market and the leading role that the combined Wheels Donlen-LeasePlan USA can play in serving companies’ fast-evolving fleet needs,” Belardi said.
“We are confident their strong business fundamentals and focus on sustainability and innovation will benefit their customers and Athene’s investors alike,” he added.
This roundup of dealer group news begins with another dealership changing hands.
According to a news release sent on Thursday, Vaughan Automotive has purchased Mike Calvert Toyota, one of the fastest-growing Toyota dealerships in Houston.
While the pandemic made it challenging for many businesses, Vaughan Automotive said Mike Calvert Toyota retained its entire staff and added new employees to further serve its customer base. As a result, the group said Mike Calvert Toyota sold more than 6,000 new and pre-owned vehicles and highlighted several store achievements, including:
—Total 2021 new Toyota volume 108.3% of prior year versus Gulf State Toyota (GST) Region at 101.9%.
—Total 2021 Toyota Certified Used Vehicle (TCUV) 112.3% of prior year versus GST at 105.7%
—Grown Service Technician staff from 22 to 55
—26 local associate degree scholarship graduates, current Highschool CTE apprentices
—Total sales year-over-year (2021 versus 2020) posting a more than 130% increase
—Customer labor sales (2021 versus 2020) generating a 161.0% increase
—Ranked sixth in GST for 2021 (157 dealerships) by percentage increase for fixed operations sales growth.
“I am thrilled to continue Mike Calvert’s legacy and build on the foundation he laid,” Vaughan Automotive owner and chief executive officer Shawn Vaughan said in the news release.
“Over the past year, we’ve seen exponential growth, not only in sales, but also in our dealership team. It’s critical to me to create a world-class customer and employee environment at Mike Calvert Toyota, something that our Houston and surrounding area communities deserve,” Vaughan continued.
Now with Vaughan as owner and CEO, Mike Calvert Toyota — which has been serving the Houston community for more than 44 years — is undergoing renovations to update the customer amenities, technician areas and body shop all the while continuing to provide high-quality customer service with top-of-the-line amenities and equipment.
The 75,000-square-foot store features refreshed sales and leasing offices, express lube, customer waiting space, restrooms, Rent-A-Toyota operations, along with top-tier facilities for technical services and an expansive lot with new and pre-owned vehicles.
Vaughan has spent most of his career training and managing Vic Vaughan Toyota of Boerne alongside his father. At the beginning of 2022, Shawn Vaughan purchased the family legacy dealership to become the owner and dealer principal of Vic Vaughan Toyota of Boerne.
Vaughan said he plan to integrate Mike Calvert Toyota further into the community through nonprofit partnerships and charitable giving, such as the newly announced Noble Nurse project.
“Houston has such a vibrant community and we’re excited to give back and really make it our home,” Vaughan said.
Group 1 dividend & stock repurchase
Similar to what fellow publicly traded dealership group Penske Automotive announced this week, Group 1 Automotive also revealed that its board of directors increased the company’s common stock repurchase authorization by $175 million to $250 million, and also declared an increase to the quarterly cash dividend.
The company also updated its year-to-date repurchase activity of 796,060 shares of common stock at an average price of $179.72 for a total of $143.1 million, which represents 4.6% of Group 1’s outstanding share count as of Jan. 1.
Group 1 indicated in a news release that it expects that any repurchase of shares will be funded by cash from operations, and repurchased shares will be held in treasury.
And Group 1’s board of directors also declared a cash dividend of $0.37 per share for the first quarter.
The company highlighted the dividend represents an increase of 2.8%, or $0.01 per share, from the fourth quarter. The dividend will be payable on June 15 to stockholders of record as of June 1.
“We continue to demonstrate strong cash flow and a healthy balance sheet, which has enabled significant capital deployment in 2022. said Earl Hesterberg, president and chief executive officer of Group 1, which has 202 dealerships located in the U.S. and U.K.
“We look to continue growth via acquisitions while also returning capital to our shareholders,” Hesterberg added.
Another Castle exec promoted
Also happening for the second time this week, Castle Automotive Group (CAG) promoted one of its executives.
In a move effective immediately, Jim McLaughlin has been promoted to vice president of fixed operations for CAG, which currently owns nine dealership locations with 14 franchises throughout Illinois and Northwest Indiana.
CAG highlighted that McLaughlin is well-known expert in his field with more than 22 years of robust automotive fixed operations experience with multiple OEMs. The group said his leadership skills range from developing and mentoring employees and streamlining processes to identifying and executing revenue growth potential.
According to a news release, McLaughlin will be crucial as CAG continues to expand its dealership footprint by modernizing the service and parts departments.
“Our company has grown at a rapid speed over the last few years, and in order to stay competitive as well as deliver results and great customer experience, we have to grow our people internally first,” CAG chief executive officer Joe Castle said in the news release.
“It is no secret that fixed operations in most stores get the least amount of resources and infrastructure, yet it has tremendous potential for growth and impact on our store’s profitability,” Castle continued. “From the day that Jim started with me, I knew that he was young, hungry and had a vision for service and parts operations that fit mine.
“I am excited for this opportunity to support our stores’ fixed ops teams at a whole new level and for Jim and his directors team — Hayley Navarro and Dave Vargocko — to all continue to grow their careers with CAG,” Castle went on to say.
Previously, CAG chose Sean Seltzer to lead its marketing strategy as chief marketing officer and promoted David Ortiz to be vice president of variable operations.
While one dealer group broke ground on a new rooftop, another dealer group continued the ongoing trend of acquiring existing stores.
Another development in what’s been a busy stretch for Sonic Automotive, the company recently held a groundbreaking ceremony to celebrate the start of construction of Audi Downtown Nashville, a two-story, 35,000-square-foot building located at 15 Lindsley Avenue in the heart of the Music City’s SoBro neighborhood.
Meanwhile, Performance Brokerage Services announced the sale of Nevada Auto Mall in Nevada, Mo., from Dan Hope to Bob Jacaway and Mark Muller of Max Motors.
Earlier this week, Sonic highlighted a move in the Show Me State, as well, boosting its used-car operations with the opening of an EchoPark Automotive retail hub in St. Louis. That announcement came on the heels of a community-driven project in Florida at EchoPark Automotive Tampa.
Sonic recapped in a news release that it conducted focus groups with Nashville residents in 2020 to test the concept and location for Audi Downtown Nashville. The company indicated the focus groups overwhelmingly liked the downtown location and felt the energy of SoBro, partnered with progressive and innovative digital tools, would bring a “tech-forward” Audi experience to downtown Nashville.
Sonic highlighted Audi Downtown Nashville will be an innovative space where guests can test-drive new Audi models, build and customize their ideal Audi, and enjoy convenient Audi service from factory-trained technicians, bringing the future of automotive luxury directly to Nashville.
“Our Audi Nashville dealership has built a reputation for innovation, luxury, and exceptional customer care, and we are excited to expand that level of excellence into an exciting new destination at Audi Downtown Nashville,” Sonic chief executive officer David Smith said in the news release.
“This new location will be the first of the Audi of America brand to feature an evolutionary new way for consumers to shop, buy, and service their vehicles and experience our Audi Nashville team’s exceptional guest experience,” Smith continued.
As part of the seamless digital guest experience at Audi Downtown Nashville, customers will be able to select any Audi model from either Nashville location for convenient pickup, empowering them with more technology, complete transparency, and the most convenient way to give their Audi the service it deserves.
“We are thrilled to partner with Audi of America on this new concept,” Sonic president Jeff Dyke said. “We’ve assembled a top-notch team to bring this innovative dealership model to life and are looking forward to providing guests in Nashville and surrounding areas with a unique way to shop for and service their vehicles.”
Dealerships change hands in Missouri
According to that news release from Performance Brokerage Services, Nevada Auto Mall was established by Dan Hope in 1994 and remained family owned and operated since opening its doors.
The firm highlighted Hope began his career selling vehicles in 1969 before he acquired his first dealership in 1975. After more than 50 years in the business, Hope is looking forward to retirement, according to Performance Brokerage Services.
Max Motors was established in 2006 in Butler, Mo. During the past 16 years, the company has expanded to 10 dealerships and one collision center across Missouri and Kansas. This acquisition marks the group’s second location in Nevada, Mo.
The dealership will remain at its current location at 2501 East Austin Boulevard in Nevada, Mo., and has been renamed Max Ford of Nevada and Max Chrysler Dodge Jeep Ram of Nevada.
As part of the acquisition, the dealerships will retain their employees, including Hope’s son and grandson.
“Nevada Auto Mall and the Hope family name have been doing business for 25 years and are known throughout the region for delivering a pleasurable buying experience,” Max Motors president and CEO Bob Jacaway said in the news release from Performance Brokerage Services. “It’s our mission to continue that legacy with Nevada Auto Mall as part of the Max Motors family.”
A new month begins with another acquisition announcement.
DealerBuilt, an enterprise dealer management system (DMS) provider for retail dealerships, on Monday announced the acquisition of Vistadash, a leading agnostic marketing intelligence platform that helps the automotive industry standardize digital metrics to create a fair baseline measurement of digital performance.
DealerBuilt said through a news release that this acquisition signifies continued progress in its plans “to shape the future of automotive retail.”
Mike Trasatti is DealerBuilt’s chief executive officer.
“We understand the value of data and the real need to provide dealers and the industry with better business intelligence tools so they can react to an ever-changing market,” Trasatti said in a news release. “DealerBuilt was built for dealers by dealers to solve their pain points and frustrations with DMS providers. That commitment remains as true today as it was when we first started back in 2008.
“These are exciting times for the future of DealerBuilt and our dealers. And this is just the beginning of our expansion plans. With this acquisition, we further strengthen our commitment to our customers and this industry to deliver impactful solutions,” Trasatti continued.
DealerBuilt highlighted Vistadash has a platform that brings a vast array of automotive marketing metrics into one single sign-on dashboard. It standardizes a dealer’s Google Analytics account, measuring data on an “apples to apples” comparison.
The company explained the platform can take data points from multiple sources, layer them together and create a condensed view. DealerBuilt noted that this process can expose “blind spots” and opportunities to improve the dealer’s marketing performance.
DealerBuilt mentioned that Vistadash’s platform is in high- demand and has quickly grown from 500 rooftops to more than 2,700 over the past three years.
“With our strong growth, this is a much better alignment for Vistadash,” Vistadash president Dan Moore said in the news release. “This acquisition will continue to strengthen our expansion and the actionable insights we provide dealers so they can make meaningful decisions for their business expansion and profitability.
“First-party data is critical to understanding what areas of the dealership are impacted. DealerBuilt and Vistadash have the knowledge and expertise to deliver a much-needed bi-solution to the industry,” Moore went on to say.
DealerBuilt’s DMS is designed to be a modern, highly customizable platform that can be precisely tailored to a dealership’s unique business processes and enterprise transaction and reporting requirements.
Formed in 2008 to bring to market an enterprise DMS that provides a more dealer-centric alternative to the traditional market offerings, DealerBuilt currently partners with hundreds of dealerships and dealer groups, combining modern, user-friendly technology, a strong legacy of co-innovation with dealers and an extensive network of integration partners.
For more information about DealerBuilt, call (888) 808-0733 or visit https://dealerbuilt.com.
Gina Cocking is managing director and chief executive officer of Colonnade Securities, a Chicago-based investment banking firm that specializes in merger and acquisition advisory services.
Cocking spent some of her time in North Carolina for the recent Auto Intel Summit for this episode of the Auto Remarketing Podcast, discussing the plethora of mergers and acquisitions within automotive that have happened so far this year and why more could be in the pipeline.
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
As an entrepreneur, Shift chief executive officer George Arison has often been a “builder” when it comes to tech-enabled platforms.
In addition to co-founding Shift, Arison was co-founder of Taxi Magic, which is now Curb
In his leadership of Shift, he has long envisioned a dealer listings marketplace at the company, but realized that it would have taken at least two years for the company to have built such a platform itself, given the work Shift already has to do in its core business.
So, instead, Arison and Shift became “buyers.”
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We begin this dealer group M&A roundup in the Southwest, where Phoenix-based Earnhardt Auto Centers has sold two Las Vegas stores — Earnhardt Buick GMC and Earnhardt Mazda — to Jerry Seiner Dealerships, a group based in Utah.
This was announced Thursday by Kerrigan Advisors, which represented the Earnhardt group in the transaction.
“The sale of these stores was not an easy decision for our family, but it was the right one as we increase our focus on our highly successful core group of stores in Arizona. Once again, Kerrigan Advisors not only identified an excellent new owner for the stores, but they also ensured a smooth, harmonious transaction,” said Dodge Earnhardt, who is president of Earnhardt Auto Centers, in a news release.
“We are very grateful to the Kerrigan Advisors team, especially Erin Kerrigan and Marie Brashears, for their hard work to ensure this sale was a success,” Earnhardt said.
Erin Kerrigan, the founder and managing director of the advisory firm, added: “It was an honor to represent the Earnhardt family and work with their executive team again.
“We were pleased to identify the right buyer for the Earnhardt’s valuable Las Vegas dealerships,” she said. “The Jerry Seiner executive team, and owner Chris Hemmersmeier, recognized the value of entering the Las Vegas market with these franchises, and the opportunity the city’s tremendous economic expansion offers for continued sales growth.”
Moving eastward to the St. Louis area, Asbury Automotive Group has sold its store known formerly as Plaza Lexus in Creve Coeur, Mo., to the Gurley Leep Automotive Family.
That deal, announced Monday, was completed last month. The store is now known as Spirit Lexus.
“We are excited to add our second Lexus franchise to the Gurley Leep Family. We plan on bringing our family values of world class service and community philanthropy to greater St. Louis,” said Mike Leep, Jr., who is president of the Gurley Leep Automotive Family.
The store was part of the Plaza Motors group that Asbury has owned and operated since 1998. Its dealerships in the area include Plaza Mercedes, Audi, Jaguar Land Rover, BMW and Infiniti.
“St. Louis is an important market for Asbury and we have a strong connection to the community,” Asbury president and chief executive officer David Hult said in the release. “Ware excited to continue serving our guests at the Plaza dealerships in the city of Creve Coeur.”
For decades, you could walk into an ADESA facility (or any auto auction, for that matter) and generally know what to expect on sale day.
A multitude of lanes, each with a block where an auctioneer would call bids, as vehicles would slowly drive through as dealers put in their bids.
The auction format has evolved over the years, particularly recently as more wholesaling goes digital or through hybrid online-offline formats — a trend driven over time by multiple factors.
However, it largely remains among the most significant avenues through which used cars are bought and sold wholesale.
Thursday’s news that Carvana would be buying the U.S. auctions of ADESA, the nation’s second-largest auction company, from KAR Global shakes up the dynamics of the auction industry, certainly when it comes to participant makeup of the space.
But what will an ADESA auction look like after new ownership?
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Carvana’s agreement to buy ADESA’s U.S. auction locations for $2.2 billion is arguably the most landscape-shifting move to impact the wholesale auto industry in decades, if not ever.
One might ask, though, why would a digital used-car retailer buy such a physical asset-heavy business as a bricks-and-mortar auto auction chain — especially at a time when the wholesale car business is moving further online?
What’s in it for Carvana?
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