AutoNation to Buy Six Texas Dealerships
AutoNation Inc. announced today that it will acquire six dealerships in Texas that have combined annual revenues of about $575 million.
AutoNation CEO Mike Jackson dubbed the purchase the “biggest industry acquisition deal in the U.S. in a decade,” according to his Twitter page.
The sale price was not publicized per the sellers, but industry estimates indicate that dealerships typically sell for three to five times annual revenues.
The acquired dealerships are projected to sell about 14,000 new and used cars this year, and will add approximately 1,000 employees to AutoNation’s roster. The Fort Lauderdale, Fla.-based retailer had 19,400 employees at yearend 2011.
AutoNation will buy five stores in the Dallas area — three Volkswagen, one Audi, and one Porsche. All are being purchased from the Boardwalk Auto Group. The sixth dealership in the purchase is Spring Chrysler Jeep Dodge Ram in Houston, owned by Alfred Flores and Bruce Glascock.
The deals, slated to close by yearend, will give AutoNation 227 dealerships, including 50 new-car franchises in Texas. Previously, AutoNation’s latest acquisition was a Toyota store in Fort Myers, Fla., in early 2011.
AutoNation Chairman and Chief Executive Mike Jackson said in a television interview about the deal that the company’s new car sales were up to 22,571, a 21% increase from last November.
