AutoNation Inc. has agreed to buy RepairSmith, a mobile automotive repair and maintenance provider. The $190 million deal, made public Monday, is expected to close in the first quarter of 2023.
RepairSmith's technicians come to a home or workplace to service individual, dealership and fleet customers, who can schedule appointments online. The business also will help AutoNation, the nation's largest new-vehicle retailer, recondition cars and expedite delivery.
RepairSmith, of Los Angeles, has operations in Arizona, California, Florida, Georgia, Nevada, Oregon, Texas and Washington. The company in August 2021 listed Mercedes-Benz and Porsche's venture capital arm, Porsche Ventures, among its investors.
"By providing an expansion of our group's capabilities, we not only begin to truly leverage our scale, but most importantly offer an expanded range of products and services that will increase both customer loyalty and deepen our share of our customers' household-related mobility spend," AutoNation said in a written statement.
AutoNation CEO Mike Manley in October credited growth in parts and service and finance and insurance as two of the components fueling the company's 4.5 percent uptick in third-quarter revenue to $6.67 billion. The Fort Lauderdale, Fla., auto retailer in October purchased auto finance company CIG Financial for $85 million. In November, AutoNation invested about $11.7 million to buy a 6.1 percent stake in vehicle listings company TrueCar Inc.
"RepairSmith is the next step in our plan," Manley said in a written statement. "It expands AutoNation's ability to penetrate the extensive after-sales service market and conveniently respond to our customers' needs by broadening the reach of our existing after-sales network."
AutoNation said RepairSmith will service its existing customers and those who bought vehicles outside the AutoNation dealership network. The retailer noted that although about 80 percent of vehicles it sells are serviced annually at franchised dealerships in the first three years of ownership, that percentage drops sharply after the three-year mark.
AutoNation ranks No. 1 on Automotive News' list of the top 150 dealership groups based in the U.S., with 262,403 new-vehicle retail sales in 2021.