Fidelity Holdings Inc., a Kew Gardens, N.Y., telecommunications firm, last week closed its acquisition of Major Automotive Group of Long Island City, N.Y., in a stock and equity transaction valued at $14.7 million.
The deal makes Major Automo-tive Group the ninth public dealership chain in the country. Fidelity Holdings stock is listed on the NASDAQ exchange as FDHG.
Major Automotive Group, a chain of four stores, intends to acquire small dealerships in New York and New Jersey, particularly dealerships in metro New York.
Most other public dealership groups have been buying larger stores in the West and the South.
'We can bring in small dealerships and turn them around and not worry about other public groups coming into the market,' explains Bruce Bendell, chairman and co-founder of Fidelity and owner of the dealerships.
Bendell expects to double the chain's size within a year. Bendell owns a Nissan store he intends to bring into the Fidelity fold.
Fidelity also is working on acquisitions of three more dealerships.
Major Automotive Group has annual revenues of $150 million and has Chevrolet, Subaru, Chrysler, Jeep and Dodge franchises.