Castle Automotive continues Chicago-area dealership expansion

Castle Automotive Group of Oakbrook Terrace, Ill., made its first acquisition of 2023 with the purchase of three dealerships in Chicago's western suburbs.

Castle Automotive on Thursday bought Pugi Auto Group, consisting of Pugi Volkswagen, Pugi Mazda and Pugi Hyundai-Genesis of Downers Grove, all in Downers Grove, Ill., southwest of Chicago, from dealer Dominic Pugliani.

The dealerships were renamed Castle Volkswagen Downers Grove, Castle Mazda Downers Grove and Castle Hyundai Downers Grove-Genesis of Downers Grove. The Hyundai and Genesis brands currently are housed in one building, but Castle Automotive is constructing a standalone Genesis facility, said Andrew Dorgan, the group's director of corporate development.

Mazda, Hyundai and Genesis are new brands for the group, Dorgan confirmed.

"We've been looking for Hyundai," Dorgan told Automotive News. "We're looking for very strong new-car throughput acquisitions. Collectively, this group sells upward of 250 new [vehicles] a month."

The deal marks Castle's first acquisition since fall 2022 when it bought two dealerships representing seven brands in McHenry, Ill., Dorgan said. Castle Automotive also bought a Stellantis dealership last summer.

Dorgan said Jennifer Rafael, vice president for the Midwest region of Dealer Solutions Mergers and Acquisitions, a buy-sell firm with a U.S. head office in Naples, Fla., represented Pugliani in the transaction.

Castle Automotive ranks No. 144 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 5,207 new vehicles in 2022.