Atlantic Automotive Corp. of Owings Mills, Md., is acquiring Herb Gordon Auto World of Silver Spring, Md., for an undisclosed amount.
CEO Steven Fader said Atlantic plans to acquire more dealerships.
Atlantic is a holding company owned by the Fader family. The company includes the 19-dealership Heritage Automotive Group (Saturn, Chevrolet, Dodge, Mazda, Cadillac, Oldsmobile, Volkswagen, Jeep, Subaru and Kia), Allstate Leasing Inc. and Allstate Rentals. Jerry Fader, Steven Fader's father, is president of Heritage.
Herb Gordon Auto World was founded in 1962 by the late Herb Gordon. It includes Mercedes, Dodge, Oldsmobile, Nissan, Volvo and Kia franchises, used-car operations and a body shop. Tom and Jim Gordon, the sons of Herb Gordon and owners of the Gordon organization, will continue to be in charge of day-to-day operations, Fader said.
Owings Mills is about 40 miles from Silver Spring.
Fader said that when completed, the Gordon acquisition will put Atlantic's annual revenues at more than $500 million. He declined to give vehicle sales numbers.
'We see more opportunities in the northern Virginia/Washington D.C. market,' said Fader. 'Atlantic in the near term will announce future acquisition and strategic alliances which will further our goals of offering consumers one-stop shopping for all of their automotive needs.'
Adds Tom Gordon: 'We will be joining an organization which not only shares our goals and management objectives, but which also provides vast resources for expansion and growth.'
Fader said that his company has no immediate plans to go public, but that the company is has not ruled out any options.
The deal is subject to approval by the Maryland Motor Vehicle Administration and by automakers. Fader said he expects the transaction to be completed in the third quarter of this year.