Republic Industries To Acquire 20 Dealerships Throughout Southeast
21 July 1997
Republic Industries To Acquire 20 Dealerships Throughout Southeast
Memphis-Based Dobbs Automotive Group Includes Honda, Toyota, Lexus, Ford,
Nissan, Pontiac, GMC, Mazda, Buick, and Mitsubishi Dealerships
FORT LAUDERDALE, Fla., July 21 -- Republic Industries, Inc.
today announced that it has signed a definitive agreement to
acquire the Dobbs Automotive Group of Memphis, Tennessee for $200 million,
payable in Republic common stock. The acquisition includes all related real
estate and is subject to certain conditions, including manufacturer and
government approval.
The Dobbs Automotive Group includes Honda, Toyota, Lexus, Ford, Nissan,
Pontiac, GMC, Mazda, Buick, and Mitsubishi dealerships in Tennessee, Alabama,
North Carolina, South Carolina, Florida, and Arizona. Dobbs is the seventh
largest dealer group in the United States, according to the 1996 Automotive
News Top 100.
The dealership was founded in 1921 by James K. Dobbs, Sr. and Horace H.
Hull of Memphis under the Hull-Dobbs nameplate. In more recent years, John H.
Dobbs, Sr., James K. Dobbs III, John C. Dobbs, and John Shanks grew the
business to its current size. The chairman of the Dobbs Automotive Group,
James K. Dobbs III said that as a result of the proposed acquisition, John
Shanks, 56, Chief Executive Officer, and Frank Grese, 45, Chief Operating
Officer, will enter into long-term employment agreements with Republic and
will retain their responsibilities for managing the dealerships. Republic
expects to enter into long-term employment agreements with the rest of the
senior management team of Dobbs Automotive Group and the other employees with
the dealerships.
Steven R. Berrard, President and Co-Chief Executive Officer of Republic,
said, "The Dobbs Automotive Group is one of the largest and most respected
automotive retailing organizations in the country. This acquisition
accelerates our strategy of clustering new car dealerships with our other
automotive operations in key areas of the Sunbelt states. We are extremely
pleased to welcome the management team of the Dobbs Automotive Group into the
Republic family. In particular, we are looking forward to the addition of
John Shanks and Frank Grese to our management team. These businessmen will
contribute their many years of automotive retailing experience not just to the
Dobbs' dealerships, but to the entire Republic automotive division."
John Shanks, Chief Executive Officer of Dobbs Automotive Group, said, "We
are very pleased to be making a long-term investment in Republic by joining
its network of automotive dealers, which already includes many of the most
experienced dealers in the business. Republic's passion for consumer
satisfaction and its determination to eliminate inefficiencies in the
automotive distribution system is consistent with our own beliefs. We share
Republic's commitment to enhancing the brand strength of our manufacturer
partners. For all these reasons, Republic truly represents the future of
automotive retailing."
Republic Industries, Inc., is a diversified holding company with
subsidiaries operating in the automotive retailing, automotive rental,
automotive financial services, solid waste services and electronic security
services industries. The company owns the nation's largest chain of new
vehicle dealerships and is building a chain of used car megastores which it
operates under the AutoNation USA brand name. Republic also owns National Car
Rental System, Inc., Alamo Rent-A-Car, Inc., Spirit Rent-A-Car, Inc., Value
Rent-A-Car, Inc., and some of the country's leading solid waste services and
electronic security services companies, which operate under their regionally
known business names.
SOURCE Republic Indusries, Inc.