Zeigler to acquire its first Subaru dealership

Zeigler Automotive Group is set to acquire its first Subaru dealership with the purchase of International Subaru of Merrillville in Indiana.

Zeigler, a large, privately owned Midwest dealership group, said the deal is scheduled to close on Wednesday. Zeigler is buying the dealership from International Autos Group of West Allis, Wis. Neither party used a broker.

Terms of the deal weren't disclosed, but the store will be renamed Zeigler Subaru of Merrillville.

Zeigler, with the Subaru store, will have 26 new-vehicle dealerships in Michigan, Illinois and Indiana. Zeigler also owns three Byrider used-vehicle stores, a pre-owned store in Berwyn, Ill., and a motorsports store in Kalamazoo, Mich.

While the Subaru dealership will be the group's second new-vehicle dealership in Indiana, its location in the northwest part of the state is near the Illinois border, where Zeigler has 15 rooftops throughout the Chicago suburbs.

"With Zeigler on track to continue to grow, as we have done in previous years, adding this Subaru dealership fits perfectly into our expansion strategy, especially given its location," Aaron Zeigler, president of Zeigler Automotive, said in a statement. "Subaru is a coveted brand that we have long been pursuing to add to our portfolio as an offering to our customers."

Zeigler said it plans to update the Subaru dealership's showroom, add additional service capacity and increase the display area for new- and used-vehicle inventory. A Zeigler spokeswoman said the updates would take about a year to complete.

The group noted that it will move Kyle Faiman, executive manager at its Infiniti of Orland Park store in Illinois, to the general manager role at the Subaru store.

Zeigler estimates that the Subaru dealership will add 2,400 new- and used-vehicle sales to the group annually, the spokeswoman said.

The acquisition will be Zeigler's first since it acquired Mercedes-Benz and Sprinter of Hoffman Estates, Jaguar-Land Rover Schaumburg and Infiniti of Hoffman Estates, all in suburban Chicago, in January 2020.

Zeigler of Kalamazoo, Mich., ranks No. 55 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 15,996 new vehicles in 2020.