AutoNation Inc., already the largest dealership group in the U.S., according to an annual ranking by Automotive News, will be adding more locations to the roster, thanks to its acquisition of four Barrier Motors stores in the Seattle-Bellevue area.
“We have a huge footprint in that marketplace. What we have said over the last two or three years is that we are looking to round out our offerings in each one of the market places that we serve, so this was a great opportunity now to have a full premium luxury portfolio,” an AutoNation representative told Auto Finance News. “So now we have Volvo, Audi, Mercedes Benz, Porsche, and we already had an existing BMW store. It makes perfect sense with our strategy.”
The deal, which is set to close in the 4th quarter, will bring AutoNation to 278 stores nationwide, and 22 franchises in the state of Washington, including 13 franchises in the Seattle-Bellevue market. The annual revenue for these stores is approximately $355 million, with retail sales of approximately 5,500 new and used vehicle units, according to a company press release.
Although the new stores will be rebranded under the AutoNation name, the acquisition should not have any effect on the dealership group’s current $1.7 billion credit agreement, which expires in December of 2016.
“We have lots of opportunity,” the company’s representative said. “And we use our opportunity wisely, whether it’s share buyback, whether it’s acquisition, or facility, so it won’t affect anything at all.”
