After acquiring the assets from two different independent operators last year, America’s Car-Mart finalized a similar move this week, announcing that the chain of buy-here, pay-here dealerships entered into a definitive agreement to purchase the ongoing dealership assets of Credit-Line, Inc., and Loanco, Inc., both Texas corporations doing business as Taylor Auto Credit.
As a result, the Car-Mart will be entering a new market in Taylor, Texas, which is located northeast of Austin.
According to a news release, the existing finance receivables will be excluded from the transaction and will be collected by the seller.
Car-Mart expects to close the agreement prior to the end of December.
“As previously communicated, we expect acquisitions to continue to generate outstanding returns for our shareholders, an exit strategy for owner-operators, and future growth opportunities for their associates,” Car-Mart chief executive officer Jeff Williams said in the news release. “In our markets, the best competitors have generally been a subset of the owner-operated dealerships — those operated by individuals who have chosen not to borrow excessively, focus on getting a sound automobile to their customers on reasonable terms, and provide both friendly service and disciplined collections.
“We believe we have developed a successful acquisition template which works for both parties,” Williams added.
Last year, Car-Mart announced purchases of the ongoing assets of The Car Man LLC in El Reno, Okla., as well as the ongoing dealership assets of Smart Auto Inc., which included Smart Auto Johnson City and Bright Motors Co., in the Tennessee markets of Johnson City and Knoxville.
And now Car-Mart has a presence near the capital of the Lone Star State.
“We are excited to be adding the Taylor, Texas area to our footprint and expanding our customer base in a thriving and growing market. Samsung is currently building a $17 billion semiconductor plant near Taylor, expected to bring 1,800 jobs to the area,” Williams said. “Taylor Auto Credit brings a rich history of serving customers with a talented team of associates that we welcome into the Car-Mart family. We are excited for the opportunities to grow our business in this market. In addition, we also expect to close on our previously announced acquisition of the second Smart Auto location in Knoxville, Tennessee at the end of December 2022 as well.”
Williams highlighted Taylor Auto Credit, previously owned and operated by Keith and Marcia Hagler, has been in business since 1990.
“Their values align perfectly with ours. We are looking forward to getting to know customers and to continue their great history of ‘keeping them on the road,’” Williams said. “They will be a fantastic addition to our business and will help us build a better future for the company, our associates, and our customers."
Keith Hagler previously served as president of the Texas Independent Automobile Dealers Association.
“Taylor Auto Credit has called Taylor, Texas home for over 30 years. With that being said, we are elated to announce America’s Car-Mart’s acquisition of Taylor Auto Credit. This acquisition is exciting news for Taylor, Texas and all surrounding areas,” Hagler said in the news release. “Our goal at Taylor Auto Credit has always been to keep our customers on the road, while providing the best customer experience from day one; America’s Car-Mart will continue to do just that.
“My wife, Marcia, and I are thankful that we have the opportunity to join one of the largest publicly held automotive retailers in the United States in our industry. After 30 years, seeing the end of Taylor Auto Credit is sad, but giving our team a future is the main priority. America’s Car-Mart is superior and will provide a better future for all associates and future customers,” Hagler continued. “We are thankful for the leadership within Car-Mart; they have a heart for people which has resulted in success and will continue to do so for generations to come. We are thankful for this opportunity and ready for what lies ahead.”
On Wednesday, America’s Car-Mart announced its second dealership acquisition in roughly the past 60 days.
At the beginning of October, this year’s Independent Dealer of the Year acquired a store in Oklahoma. And now, Car-Mart announced it has entered into a definitive agreement to purchase the ongoing dealership assets of Smart Auto Inc., which include Smart Auto Johnson City and Bright Motors Co.
As a result, the buy-here, pay-here dealership company will gain Tennessee locations in Johnson City and Knoxville.
According to a news release, the existing finance receivables will be excluded from the transaction and will be collected by the seller.
Car-Mart expects to close on the Johnson City location by the end of the and the Knoxville location by close of 2022.
“We are very excited to welcome Smart Auto into the Car-Mart family,” Car-Mart president and chief executive officer Jeff Williams said. “Smart Auto brings a highly experienced and talented team of associates while also helping to create a stronger presence and expanding our footprint in Tennessee. We are excited for the opportunities to grow our customers in this market.”
“Smart Auto, owned by Vincent Keller, has been in business since 2005 and their values align perfectly with ours. We are looking forward to getting to know their customers and help to keep them on the road,” Williams added. “The Smart Auto team is professional, capable and focuses on providing quality, affordable vehicles to their customers. Smart Auto will be a fantastic addition to our business and will help us build a better future for the company, our associates and our customers.”
Two technology providers familiar with independent and buy-here, pay-here dealerships just struck a deal.
According to a news release posted on Tuesday, CalAmp and Spireon announced that Spireon has acquired the LoJack U.S. Stolen Vehicle Recovery (SVR) business from CalAmp.
Executives said the integration of the LoJack U.S. business bolsters Spireon’s position as a leading provider of aftermarket telematics for dealers, while supporting CalAmp’s focus on its strategic global software-as-a-service (SaaS) initiatives.
“Spireon’s decision to acquire the LoJack U.S. business reinforces our longstanding commitment to deliver 24×7 asset visibility and actionable insights that boost profits, protect assets and increase safety and productivity,” Spireon chief executive officer Kevin Weiss said in the news release.
“The combination of LoJack’s brand equity with Spireon’s modern technology and award-winning customer service and support creates a powerful platform for continued innovation for current and future auto dealers and consumers,” Weiss continued.
With Spireon’s Kahu connected car technology, dealers can get a host of benefits, including a profit center, improved customer experience and service retention, optimized lot management and accelerated stolen vehicle recovery.
The Kahu consumer app can allow dealers to stay connected to customers after the sale and grow service revenue, with features including automated push notifications, click-to-call scheduling, and direct links back to the dealer’s website.
“On the heels of our previous plans to wind down the LoJack U.S. business, the opportunity with Spireon allows us to seamlessly transition customers to a leading provider of aftermarket GPS and sensor-based telematics,” CalAmp president and chief executive officer Jeff Gardner said.
“Aligned with the commitment we made to customers in December as well as to public safety, we have entered into a cooperative service arrangement with Spireon for a defined time period to ensure the uninterrupted quality of service during the transition that customers have come to expect from the LoJack brand,” Gardner continued.
“Spireon’s expertise and track record of success in delivering best-in-class connected car and stolen vehicle recovery technology make it the ideal company to steward the future of the LoJack U.S. business. The deal also supports the achievement of CalAmp’s financial objectives and helps to further accelerate our transformation to a global SaaS solutions provide,” he went on to say.
CalAmp said it will retain and continue to expand LoJack International, which operates as a subscription-based SaaS business. CalAmp also said it will retain ownership of the LoJack patents and trademarks.
“We’re excited to have LoJack users join nearly 4 million active subscribers from over 20,000 current Spireon customers,” Spireon president of automotive Brian Skutta said.
“We’re confident they will value our comprehensive solution capabilities that go beyond stolen vehicle recovery to include lot management, F&I profit growth and customer retention,” Skutta added.
One of the firms that buy-here, pay-here dealers use to bolster its financing options expanded its presence this week via an acquisition.
Buckeye Dealership Consulting, a provider of reinsurance and F&I products for independent operators, announced it has acquired Specialty Administration Services (SAS Pros), a provider of contract administration for automotive, RV, heavy truck and marine stores.
SAS Pros operates out of Apollo Beach, Fla., and provides contract administration of limited warranties, service contracts, GAP coverage and more. One of its focuses is contract administration for the heavy truck market, having a wide variety of TruckMaster brand warranties and service contracts.
“We’re excited to join the Buckeye team which will be a great way for us to expand further into automotive,” SAS Pros president Rob Davenport said in a news release. “Over the years we have grown our platform to serve clients nationwide as well as in Canada.”
With the addition of SAS Pro’s personnel, products and software, Buckeye said it intends to offer additional solutions to its clients.
“Claims administration will be a key addition to Buckeye’s range of dealer services. Having reinsurance company formations and management, F&I products and training, collateral protection insurance products for lenders, and now full-service claims administration all under one roof is going to accelerate us to the next level,” Buckeye Dealership Consulting chief executive officer Rob Fox Sr said.
“We have been looking to expand into this area for quite some time, and we are excited to finally be here.”
To learn more, visit BuckeyeReinsurance.com or saspros.com.
One of the primary capital providers for buy-here, pay-here dealers not only called off a merger agreement with another bank in the Lone Star State, the institution also announced a significant change in leadership.
Texas Capital Bancshares, the parent company of Texas Capital Bank, on Tuesday announced that Texas Capital Bancshares and Independent Bank Group, the holding company for Independent Bank, have mutually agreed to terminate their merger agreement.
Furthermore, Texas Capital announced that Keith Cargill has stepped down as president and chief executive officer and a member of the board of directors, effective immediately.
Back on Dec. 9, the banks announced the merger under which the companies had agreed to combine in an all-stock combination of equals. According to a news release, the termination was approved by both companies’ boards of directors after careful consideration and given the significant impact of the COVID-19 pandemic on global markets and on the companies’ ability to fully realize the benefits they expected to achieve through the merger.
“Due to the unprecedented impact of the COVID-19 pandemic, both companies’ boards of directors believe it is in the best interests of our employees, clients and all of our shareholders to focus on managing our business during this time,” Texas Capital Bancshares chairman Larry Helm said. “With the talent and depth of our team and strong organic growth model, Texas Capital Bank has built a resilient business with lasting client relationships and a record of value creation through changing market dynamics and economic pressures.
“Texas Capital Bank remains focused on supporting the health and safety of our colleagues and meeting all our clients’ needs during these challenging times and for many years thereafter,” Helm continued.
According to the announcement, neither party will pay any termination fee as a result of the mutual decision to terminate the merger agreement.
“As a result of our significant multi-year investments, healthy balance sheet, ability to recruit and foster the best talent and history of driving strong results, Texas Capital Bank is well positioned to continue to execute against a standalone strategy,” Helm said. “Our team and resources will be focused on leveraging our innovative and differentiated capabilities to continue providing a premier client experience and deliver elevated returns.
“Further, we maintain the scalability and commitment to operational excellence that will enable us to drive increased efficiencies and profitability and support sustainable, long-term value creation. Our dedicated team, whose tireless efforts to enhance our clients’ experience and the communities where we operate, will continue to guide Texas Capital Bank’s purpose and success,” he went on to say.
More details about leadership changes
Along with merger decision, Texas Capital also said Keith Cargill has stepped down as president and chief executive officer and a member of the board of directors of both companies, effective immediately.
The bank then said Helm, who has served as chairman of the Texas Capital Bancshares board since 2012, will serve as executive chair, CEO and president of both companies until a permanent successor has been named.
The bank added Cargill will serve as vice chairman of both companies through the end of 2020 to help support a smooth transition.
In addition, the announcement indicated James Browning, an independent director and member of the Texas Capital Bancshares board since 2009, has been appointed lead director.
The company highlighted Helm has served as a director of the Texas Capital Bancshares board since 2006, contributing significant operational and financial expertise.
The bank noted Helm has extensive knowledge of Texas Capital’s strategy, operations and culture having worked closely with the Texas Capital management team. During his tenure, Helm has provided important oversight and counsel to support Texas Capital in driving shareholder value and growth as well as navigating challenging market environments. He brings more than 30 years of commercial banking experience, including management positions at Bank One Corp., most notably as CEO of the Dallas Region and CEO of U.S. Middle Market Banking.
Elysia Ragusa, chair of the Texas Capital Bancshares governance and nominating committee, said, “As part of our focus on succession planning, the board believes that it is the right time for a transition in leadership as the company executes a strategy to achieve enhanced operational focus and profitable, long-term value creation.
“We are fortunate to have someone of Larry’s caliber and experience ready to assume the role of executive chair, CEO and president at this important juncture for the company,” Ragusa continued. “Larry has worked closely with the entire management team over the last 14 years, gaining a deep understanding of the ccompany’s unique opportunities. We are confident that he is the right person to lead Texas Capital Bank until we have identified a permanent successor for the CEO role.”
Texas Capital Bancshares said its board intends to conduct a search process to identify a permanent CEO and continues to be engaged with Egon Zehnder, a leading executive search firm, as part of the board’s robust and ongoing succession planning process.
“Under Keith’s leadership, the Texas Capital Bank team has built one of the best, fastest-growing business and private wealth banks in the United States,” Helm said. “Through multiple cycles, the company has achieved significant growth by fostering top talent and a culture of integrity, innovation and collaboration, earning and keeping the trust of our clients through exceptional service and meeting the needs of middle-market entrepreneurs.
“With this strong foundation in place, the team is well-positioned to continue executing against the company’s strategic priorities and generate returns for our clients and shareholders,” he continued.
“On behalf of the entire board, I want to thank Keith for his contributions as CEO and as a founder of Texas Capital Bank,” Helm went on to say. “I look forward to working with Keith and our leadership team to ensure a smooth transition for all our stakeholders, particularly as we navigate the current impact presented by the global pandemic. We wish Keith the very best in his future endeavors.”
Cargill offered these comments about the leadership change.
“After much deliberation, the Board and I have decided that now is the right time for me to step down as president and CEO of Texas Capital Bancshares and Texas Capital Bank,” he said. “It has been one of the greatest honors of my life to be one of the founders of this great company and serve as CEO alongside our exceptional management team and our talented colleagues.
“Our team has transformed Texas Capital Bank into one the most successful banks in the country that caters to entrepreneurs, business owners, private wealth clients and other loyal individuals,” Cargill went on to say.
Earlier in its fiscal year, America’s Car-Mart began to make its credit application available online, so the chain of buy-here, pay-here stores could begin the underwriting process with potential buyers before they arrive at one its dealerships.
After announcing operating results for the third quarter of fiscal year 2020, Car-Mart president and chief executive officer Jeff Williams described what the addition to its online platform did for the company.
“We’ve had our online credit application in place, just beginning this fiscal year, and we’re getting a lot of traffic online,” Williams told the investment community during Car-Mart’s quarterly conference call. “We’re getting a lot of applications online, and we’re doing a fair job of converting those applications to physical visits to the dealerships.
“The close rate for those sales is pretty high,” Williams continued. “We’re really fairly new into that effort at this point, but we’re optimistic. We’re good now, but we’re going to get better as far as our digital efforts. But they certainly have increased our traffic and we’ve seen some good results so far.”
Car-Mart retailed a total of 39,600 vehicles in the quarter, working out to be sales volume productivity of 30.6 retail units sold per store per month. That performance is up from 27.9 vehicles per store per month for the prior-year quarter.
With customers getting the credit process started online, Williams explained it allows Car-Mart personnel to stress the company’s value proposition when potential customers arrive at one of its 145 locations.
“We do emphasize our lower interest rate, our shorter term, the total cost of ownership with Car-Mart, and then the peace of mind that’s so important to the quality of lives of our customers,” Williams said during the call. “When you put all that together, what we offer is superior to other offerings in the market.
“There are a lot of other offerings in the market and competition is very high,” he continued. “But we’re doing good in a market because of our efforts to really block and tackle and treat these customers at the highest level.”
In a press release distributed by the company Williams added, “As we have said, we believe that most all of our dealerships, under the direction of our talented general managers, can support a higher number of customers over time. We have significant growth opportunities by leveraging our current footprint. The top-line growth we are experiencing supports this view.”
Earlier in the quarter, Car-Mart entered into a definitive agreement to purchase the ongoing dealership assets of Taylor Motor Company and Auto Credit of Southern Illinois, based in Benton, Ill.
“We are very excited for this opportunity and to be gaining three dealership locations in Marion, Benton and Mount Vernon, Illinois, as well as a vehicle reconditioning location in Benton, Illinois. The existing finance receivables will be excluded from the purchase and will be collected by the seller. The transaction will include leases on the related properties. Illinois will represent our 12th state and these locations are near existing Car-Mart dealerships in surrounding states,” Williams said at the time of the move.
“Taylor Motors has served southern Illinois for over 88 years and has strong sales volume productivity with a dominant market position in its service areas. The company has operated at a very high level for over 25 years under the leadership of Steve Taylor, a third-generation owner, and his talented, experienced team of associates,” Williams continued.
“Like Car-Mart, Steve and his team focus on keeping customers on the road by selling good, solid mechanically sound vehicles and taking care of customers after the sale. Steve and his team will be joining our team and Steve will be contributing to our expansion efforts into the future,” Williams went on to say.
While the transaction was expected to close in January, Car-Mart said it was still in the works when it shared its Q3 results in February.
“We are close to completing our acquisition of Taylor Motors. We had hoped that it would have closed in January, but it’s taking a little longer than expected to obtain the necessary licenses in a new state for us,” Williams said, who then shared details about the company’s future growth plans.
“We plan to open our Cabot, Ark., dealership in the fourth quarter, which will give us six new dealerships for fiscal year 2020,” he said. “New dealership openings are an important part of our growth plans and we will continue to add locations at a rate that matches our ability to support this high touch business.
“We also have locations in Edmond, Okla.; Chattanooga, Tenn.; and Norman, Okla., in process for this upcoming fiscal year,” Williams went on to say.
One of the primary capital providers for buy-here, pay-here dealers not only in the Lone Star State, but elsewhere nationwide, is merging with another bank in Texas.
On Monday, Texas Capital Bancshares, the parent company of Texas Capital Bank, and Independent Bank Group, the holding company for Independent Bank, announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger of equals with a total market value of approximately $5.5 billion.
According to a news release, the merger is expected to close during the middle of next year and is subject to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of each company.
Officials indicated the name of the combined holding company will be Independent Bank Group and the name of the combined bank will be Texas Capital. They noted retail locations in Colorado will continue to operate and retain the Independent Financial branding.
The corporate headquarters of the combined company will be located in McKinney, Texas. The combined company will trade under the Independent Bank Group ticker symbol “IBTX” on The Nasdaq Stock Market.
Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, Texas Capital shareholders will receive 1.0311 shares of Independent Bank Group for each Texas Capital share they own. Former Texas Capital shareholders will own 55% and Independent Bank Group shareholders will own 45% of the combined company.
Upon consummation of the transaction, the combined company expects to offer an annualized dividend on its common stock of $1.00 per share, subject to approval by the board of directors.
Top executives highlighted the merger combines two relationship-driven, client-focused and founder-led institutions with complementary lines of business and deep benches of talent. Together, the leaders believe Independent Bank Group and Texas Capital are ideally positioned to leverage their respective strengths to deliver exceptional operational and financial performance.
“Today is an exciting day for Texas Capital and I am confident that executing this transformative merger of equals is the right strategy for our team, our company, our clients, our communities and our shareholders, Texas Capital president and chief executive officer Keith Cargill said in the news release.
“It has been an honor to build Texas Capital into one of the best business and private wealth banks in the U.S.,” Cargill continued. “We have found the ideal partner in Independent Bank Group given our shared core values and strong commitment to fostering talent and delivering a premier client experience.
“Independent Bank Group is an outstanding complement to Texas Capital with its enviable commercial branch network, small business market leadership and solid deposit funding model in combination with our strong corporate banking practice and powerful technology and compliance infrastructure,” he added. “Importantly, this accretive transaction delivers significant value to our shareholders, with substantial growth drivers, an annual dividend and increased profitability run rate with meaningful synergies.
“I believe that David is the right individual to lead the combined organization into the future, and I look forward to working with him and the rest of the team to merge these two great businesses into one team, one culture and one of the highest performing banks in America,” Cargill went on to say.
The executive Cargill referenced is David Brooks, who is Independent Bank Group chairman and CEO and will be president and CEO of the combined company. Cargill will serve as special advisor to the chairman, president and CEO and continue to assist the franchise in talent and client retention in addition to advising on key strategic initiatives.
The announcement also mentioned the leadership team led by Brooks will include five current Texas Capital executives and four current Independent Bank Group executives.
The board of directors will be composed of seven directors from Texas Capital and six directors from Independent Bank Group. Larry Helm, Texas Capital Non-Executive Chairman of the Texas Capital Board, will serve as lead independent director of the combined company’s board of directors.
“Combining Independent Bank Group and Texas Capital is the logical next step for both companies,” Brooks said in the news release. “We have built a strong, broad commercial branch footprint across Texas and in Colorado through multiple transactions, which have effectively doubled our assets every two years.
“This combination with Texas Capital is a singular opportunity to significantly diversify our customer base, business lines and loan concentrations, enabling us to accelerate our growth and enhance our financial flexibility for continued strategic investments,” he continued. “At the same time, Independent Bank Group will benefit from the strength of Texas Capital’s technology, processes and systems to ensure we are even better positioned to serve and compete for clients in all lines of business while mitigating risk.
“With our combined scale, a deeply experienced and talented team with similar cultures and focus on superior operational execution, we believe that together we are well positioned to generate enhanced value for both companies’ shareholders through improved efficiency, strong returns on capital and earnings accretion,” Brooks went on to say.
“I am honored to lead the organization following the close of the transaction and want to offer my deepest gratitude for the outstanding leadership of Keith, who has been instrumental in reaching this exciting day,” Brooks added.
Executives also mentioned six other what they called “strategically compelling” reasons this move benefits both organizations, including:
—Enhanced scale to drive growth and improve profitability: The combined company, with approximately $48 billion in assets and $39 billion in deposits, will create the largest Texas headquartered bank by Texas deposits with a significant presence in Colorado and will provide a strong foundation to serve clients. The enhanced scale provided by the combination enables further investment in technology to better manage risk and serve clients across business lines.
— Diversified business mix: This combination will create a full-service financial institution with extensive strategic and client coverage, including enhancing the revenue mix by diversifying each company’s client base, business lines and loan and funding concentrations.
— Strengthened core deposits franchise: Texas Capital and Independent Bank Group will benefit from a substantially solidified and granular core deposit business, which will allow for a more stable source of funds and increased optionality to compete in a dynamic market environment.
— Attractive, fast-growing markets: The combined company will have a strong presence in five of the top 10 fastest-growing metro areas in the United States.
— Experienced combined management team: In addition to a strong track record of organic growth and high-performance, the combined management team has significant experience successfully executing and integrating transformative transactions.
— Strong cultural alignment and commitment to communities: Texas Capital and Independent Bank Group are committed to preserving the strong cultures of collaboration and entrepreneurial spirit in our efforts to deliver premier and differentiated client experiences. Both companies will maintain the important community relationships built over decades and the combined company is committed to continuing its investments to local programs and communities.
