AutoNation to acquire 11 dealerships

Auto retail giant AutoNation Inc. is poised to make its first franchised dealership acquisitions since 2018, after it signed an agreement to acquire 11 stores from Peacock Automotive Group of Hardeeville, S.C.

AutoNation said Tuesday that it plans to buy 11 stores and a collision center in the Hilton Head and Columbia areas of South Carolina and in Savannah, Ga., from Peacock Automotive, a group owned by Warner Peacock. The group dates to 2001 and counts baseball great Ken Griffey Jr., lawyer Jay Brennan and another unnamed lawyer as its investors, Warner Peacock said.

Peacock's dealerships represent a mix of import, domestic and luxury brands including Hyundai, Genesis, Jaguar, Land Rover, Audi, Porsche, Subaru, Chrysler, Dodge, Jeep, Ram and Volkswagen.

AutoNation, the largest new-vehicle retailer in the U.S., did not release the price it will pay to acquire the stores but said the deal is expected to close in the summer following necessary approvals such as those from automakers. The 11 stores are expected to generate $380 million in annual revenues.

Peacock told Automotive News that he has known Mike Jackson for years and that the companies began talking about a deal in November, a contract was signed in February, and they hope to close the deal on June 1.

“I picked AutoNation because I know the kind of guy Mike Jackson is,” Peacock said, adding he thinks AutoNation is a high-quality dealership group and its represenatives have told him the company will retain all of his employees.

AutoNation last bought a franchised dealership in mid-2018, when it purchased a BMW store in California. When AutoNation released fourth-quarter earnings in February, CEO Mike Jackson said he expected the retailer to have some new-vehicle franchise acquisitions this year. He said any dealership purchases would fit "our strategy and our footprint."

Even after the Peacock announcement, that sentiment still stands.

"We will continue to look for attractive acquisitions that complement our portfolio and meet our return thresholds," AutoNation CFO Joe Lower told analysts and investors in a call Tuesday.

Last week, Lithia Motors Inc. purchased Michigan's Suburban Collection, adding 34 dealerships and 56 franchises. That purchase put Lithia, which has been on an extensive dealership-buying spree, ahead of AutoNation in store count: 246 to AutoNation's 235 stores at year-end 2020, including five used-only AutoNation USA stores.

If neither company buys or opens additional dealerships in the interim, they would have the same store counts after the Peacock deal closes.

Warner Peacock, the group's CEO, will retain a Ford store in Maitland, Fla., according to Stephens Inc., which advised Peacock in the planned sale to AutoNation.

Peacock, 66, said he has no plans to retire and he and his investors plan to retain the business and name Peacock Automotive Group, which also has some non-dealership subsidiaries.

“My plan is to expand in Central Florida to the extent I can find acquisition targets,” Peacock told Automotive News.