AutoNation to Acquire Dealer Groups
August 18 2015 - 10:40AM
Dow Jones News
AutoNation Inc., the nation's largest auto-dealer chain by
revenue, agreed to purchased two smaller dealer groups, adding to a
string of acquisitions in car retailing as U.S. light-vehicle sales
set the strongest pace in more than a decade.
AutoNation is acquiring Carl Gregory Enterprises and Valley
Motors Auto Group in deals that represent more than $600 in annual
revenue. The purchase of Carl Gregory Enterprises, a group that
generated $480 million in sales in 2014, is the largest deal by
revenue for the Fort Lauderdale, Fla.-based chain since 2001.
AutoNation, with $19 billion in 2014 group revenue, is the No. 1
auto retailer in the U.S., outpacing Penske Automotive Group by
about $2 billion in sales and No. 3 retailer Group 1 Automotive
Inc. by nearly $10 billion, according to Automotive News, a trade
publication.
The deal follows billionaire investor Warren Buffett's entry
into the auto industry earlier this year when Berkshire Hathaway
Inc. closed its acquisition of the Van Tuyl Group, the nation's
fifth-largest dealership chain with 81 stores in 10 states. Mr.
Buffett has said he'll look to expand that business.
AutoNation's acquisitions includes 16 stores selling a variety
of domestic and foreign brands in the southeast and the Baltimore
and Washington, D.C. markets.
Chief Executive Mike Jackson in a statement said the company
continues to "seek acquisitions to leverage our scale, expand the
AutoNation brand and provide a peerless experience to more
customers."
Write to John D. Stoll at john.stoll@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 18, 2015 10:25 ET (14:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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