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CarLotz
CarLotz, Inc., One Of The Largest Privately-Held Used Vehicle Retail Disruptors With The Industry’s Only Consignment-To-Retail Sales Platform, To Become A Public Company
October 22nd, 2020 by Car Lotz
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Acamar Partners Acquisition Corp. (Nasdaq: ACAM) and CarLotz, Inc.
Enter into a Definitive Business Combination Agreement
Fidelity Management & Research Company LLC and other investors along with strategic partners including KAR Global (parent of ADESA and TradeRev), McLarty Diversified Holdings (founded by Franklin McLarty, former CEO of one of the largest U.S. automotive dealership groups), Rick Wagoner (former CEO of General Motors) and TRP Capital Partners (existing investor and leading private equity fund in the transportation sector) commit to fund a $125 million common stock PIPE. Acamar Partners and CarLotz Co-Founder and Chief Executive Officer Michael Bor are also participating in the PIPE
High Growth, Run-Rate Profitable and Cash-Flow Breakeven
Investor Conference Call Scheduled for 9:00 a.m. ET on Thursday, October 22
October 22, 2020 – Miami, FL and Richmond, VA – Acamar Partners Acquisition Corp. (Nasdaq: ACAM) (“Acamar Partners”), a publicly-traded special purpose acquisition company, and CarLotz, Inc. (“CarLotz” or the “Company”), one of the largest privately-held used vehicle retail disruptors with the industry’s only consignment-to-retail sales platform, announced today they executed a definitive business combination agreement that would make CarLotz a public company. At closing, anticipated in the fourth quarter of 2020, the combined company will be named CarLotz, Inc. and is expected to remain listed on Nasdaq and trade under the new ticker symbol LOTZ.
Fidelity Management & Research Company LLC and other key investors along with strategic partners including KAR Global (NYSE: KAR, the parent company of ADESA and TradeRev), McLarty Diversified Holdings (founded by Franklin McLarty, former CEO of one of the largest U.S. automotive dealership groups), Rick Wagoner (the former CEO of General Motors) and TRP Capital Partners (existing investor and leading private equity fund in the transportation sector) have committed to invest $125 million in the form of a common stock PIPE at $10.00 per share. Acamar Partners and CarLotz Co-Founder and Chief Executive Officer Michael Bor are also participating in the PIPE. Strategic investors and management represent circa 15% of the PIPE.
CarLotz was founded on a vision to transform the used vehicle industry. With the industry’s only consignment-to-retail sales model and its asset-light inventory sourcing model, CarLotz offers a compelling value proposition for both vehicle buyers and sellers, resulting in significant market share expansion opportunities in the massive and fragmented used vehicle industry. CarLotz’ proprietary technology and omni-channel marketplace provide consumers a seamless, worry and hassle-free user experience that eliminates the frustrations often experienced in the car buying and selling process. Additionally, CarLotz pioneered Retail Remarketing™, which enables corporate sellers of vehicles to access the financial benefits of direct-to-retail sales opportunities as opposed to settling for wholesale prices through a vehicle auction. Today, as the only consignment-to-retail service provider in the industry, CarLotz serves not only consumers seeking to sell a used vehicle but also many of the largest corporate vehicle remarketers in banking, rental, fleet management, original equipment manufacturers and other markets. CarLotz has built a team and culture around transparency, integrity, customer service and fun, which drives the Company’s decisions and has helped achieve some of the best net promoter scores in the used vehicle industry.
CarLotz Investment Highlights
The highly-fragmented, $841 billion U.S. used vehicle market is ripe for disruption with less than 1% e-commerce penetration and less than 0.1% Retail RemarketingTM penetration today, providing a significant market share opportunity for CarLotz.
CarLotz offers a compelling value proposition for corporate vehicle sourcing partners and retail sellers who, on average, receive approximately $1,000 more for their vehicles, net of all fees and expenses, than when utilizing the alternative wholesale sales channel (e.g., auction, trade-in, etc.).
Customers who buy their vehicles from CarLotz also share in the upside created by CarLotz’ pioneering consignment-to-retail sales model, which on average saves up to $1,000 as compared to traditional used car dealerships.
CarLotz’ contactless end-to-end e-commerce capabilities give buyers the opportunity to transact the way they’re most comfortable: on the internet, over the phone or in-person.
The industry’s only asset-light consignment sales model, with 90% of CarLotz’ vehicles non-competitively sourced and 60% sourced from its corporate vehicle sourcing partners, enables CarLotz to operate without the need for significant capital or capital at risk to support traditionally owned inventory.
CarLotz is the only omni-channel used vehicle business that makes it possible for corporate vehicle sourcing partners to sell their vehicle inventory at retail prices. CarLotz’ proprietary Retail RemarketingTM technology is fully integrated with those of its corporate vehicle sourcing partners providing an easy and seamless remarketing experience, as well as industry leading reporting, data analytics, pricing information and vehicle triage decision-making.
CarLotz is high-growth, run-rate profitable and cash-flow breakeven.
CarLotz is poised to take advantage of significant near-term growth opportunities anchored on its nationwide expansion plans, increased inventory from existing and new corporate vehicle sourcing partners, cutting-edge technology platforms and increased focus on marketing.
The transaction is priced at a multiple of 0.88X estimated revenue for fiscal 2022 and a multiple of 6.8X estimated gross profit for fiscal 2022, a meaningful discount to CarLotz’ publicly traded peers.
https://www.carlotz.com/blog/investors/carlotz-inc-one-of-the-largest-privately-held-used-vehicle-retail-disruptors-with-the-industrys-only-consignment-to-retail-sales-platform-to-become-a-public-company/
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