LMP Automotive Holdings Inc. said this week that it has signed an agreement to buy a Chrysler-Dodge-Jeep-Ram dealership in Greeneville, Tenn., that it expects will add $42 million in annual revenue.
The Fort Lauderdale, Fla., company said that it signed an asset purchase agreement on Tuesday to buy Chantz Scott Chrysler-Dodge-Jeep-Ram from J. Chantz Scott and Blue Sky Automotive Inc., according to a regulatory filing.
The company said it would spend $5 million to buy the dealership, including spending $4.5 million on the dealership's goodwill, plus $500,000 for furniture, fixtures and equipment. LMP said up to $2.5 million of the purchase price would be paid in company stock, according to the regulatory filing.
"This acquisition will further expand our management team and Southeast footprint," LMP COO Richard Aldahan said in a statement. "We intend to continue expanding aggressively in this region."
Scott was an Automotive News 40 Under 40 award winner in 2017 and is CEO of Chantz Scott Auto Group. His group includes a Kia store in Kingsport, Tenn., and a Chrysler-Dodge-Jeep-Ram store in Big Stone Gap, Va.
Scott bought the Greeneville dealership in 2018 from Victory Automotive Group, according to a 2018 story from The Greeneville Sun.
"LMP already has an existing footprint in Greeneville, which simplified this deal," Scott wrote in an email to Automotive News. "They have a fantastic team in place, and I am certain they will do an outstanding job and serve this community well."
LMP said it expects the transaction to close in the fourth quarter, subject to approvals, including by Stellantis.
This would be the second Greeneville dealership location for LMP. In March, LMP bought Bachman-Bernard Chevrolet-Buick-GMC-Cadillac in Greeneville. The sellers of that store were Phil Bachman and Myron Bernard.
LMP, a publicly traded auto retailer that has just more than a half-dozen franchised dealerships in its portfolio since it began acquiring stores this spring, has announced several other transactions that have not yet closed.