Editor's note: This story has been updated and corrected with revised information from LMP. The retailer is paying $425 million for its stake. An earlier version of this story had an incorrect value for the transaction.
LMP Automotive Holdings Inc., an emerging public auto retailer and subscription provider, said it agreed to pay $425 million for a majority stake in New York retailer Atlantic Auto Group and a related logistics company.
The deal, announced late Friday, would advance LMP's aggressive acquisition goal to grow to as many as 50 franchised new-vehicle stores within a year of starting from scratch.
Pending closing conditions, LMP plans to purchase a 70 percent stake in Atlantic Auto Group, which is owned by John Staluppi Sr. It represents the largest chunk of Staluppi Auto Group, which is ranked No. 9 on Automotive News' annual list of the top 150 U.S. dealership groups, based on 2019 retail new-vehicle sales. The deal would value Atlantic at $608 million.
Staluppi Auto Group includes stores owned by John Staluppi Jr., which are not involved in the transaction. Staluppi Auto Group sold 62,570 new retail vehicles last year at a combined 43 dealership locations.
Alongside previously announced acquisitions, the deal would bring Fort Lauderdale, Fla.-based LMP to a total of 26 dealership locations. LMP, which originated as a vehicle subscription company and standalone used-car lot, initiated deals to acquire new-car dealerships just this year.
Atlantic Auto Group's management will continue to operate the business once the deal is closed, LMP said, which is expected between December and January, subject to automaker approval.
Staluppi Sr., founder and CEO of Atlantic Auto Group in West Islip, N.Y., will stay on as CEO and retain a 30 percent stake in the company, LMP said Monday. The sale also includes a logistics and vehicle storage company, Atlantic Central Storage.
"Atlantic is going to continue to operate the business," LMP CEO Samer Tawfik told Automotive News. "It's going to be one of our portfolio companies, which we will expand."