LMP Automotive Holdings Inc. said Monday that it plans to buy an 85 percent stake in 10 new-vehicle franchised stores in Florida and separately buy five import dealerships in Texas.
The two deals, if completed, would add a combined $937 million in annual revenue to the growing publicly traded group that has just more than a half-dozen franchised dealerships currently, with several deals under contract. The company said it would spend $211.6 million on the two acquisitions, including real estate.
LMP said it would buy an 85 percent stake in the Alan Jay Automotive Network of Sebring, Fla., paying $50 million for the dealerships' goodwill and about $44.1 million for real estate. LMP said in addition to cash and debt it could finance the deal with as much as $25 million of common stock.
The retailer said the deal includes 21 franchises including mainly domestic brands, plus Kia, Nissan, Toyota, Maserati and Alfa Romeo.
The transaction includes 10 new-vehicle franchised dealerships, a used-vehicle store and a commercial fleet operations center, said Alan Jay Wildstein, CEO of the Alan Jay Automotive Network.
“It’s just the right timing and they’re the right partner,” Wildstein told Automotive News about his decision to sell a majority stake in his business. He noted he’s looking forward to working with the LMP executive team.
The transaction, expected to close in the fourth quarter, would generate about $345 million in annual revenue, LMP said.
Wildstein said the deal does not include the group's half-dozen stores in Michigan and Miami.