Republic Industries to Acquire New Car Dealer Groups In Southern California, Atlanta, Dallas/Fort Worth
27 October 1997
Republic Industries to Acquire New Car Dealer Groups In Southern California, Atlanta, Dallas/Fort Worth
$1 Billion in 1996 Revenue
FORT LAUDERDALE, Fla., Oct. 27 -- Republic Industries, Inc.
today announced that it has signed definitive agreements to
acquire new car dealer groups in a series of separate transactions valued at a
total of approximately $250 million, payable in Republic common stock. The
acquisitions will establish or round out automotive retailing clusters in
southern California, Atlanta and Dallas/Fort Worth, and include dealerships
near Seattle and Miami. Together, these dealerships had combined 1996 revenue
of approximately $1 billion.
Each transaction is subject to customary closing conditions, including
manufacturer and government approval. The dealer principals will sign long-
term employment agreements with Republic and will retain their respective
responsibilities.
Establishing Cluster in Southern California
Establishing an immediate and significant presence in the Los Angeles
market, Republic has signed a definitive agreement to acquire the Southern
California Auto Group. With 20 franchises and 1996 revenue of approximately
$430 million, the Southern California Auto Group is one of the largest
automotive retailers in the country. Manufacturer nameplates represented in
the dealerships include Ford, Chevrolet, Pontiac, Buick, Nissan, Toyota,
Honda, Mazda, Infiniti, Mercedes Benz, and Audi. The Lexus franchise owned
by the Southern California Auto Group is excluded from this transaction.
In the Los Angeles area, Republic already owns Champion Chevrolet and
Magic Ford/Lincoln-Mercury. The company also plans to open six AutoNation USA
used car megastores and a used car reconditioning center in Southern
California. The first AutoNation store is set to open in Irvine in January,
1998.
Adding to Atlanta Cluster
In the metro Atlanta area, Republic has signed a definitive agreement to
acquire the Sutherlin Automotive Group. The Sutherlin Automotive Group
includes 12 franchises, representing the Toyota, Nissan, Honda, Isuzu,
Chrysler Plymouth, Jeep Eagle, Dodge, Pontiac and Chevrolet, Buick, and
Oldsmobile brands. The dealerships had approximately $340 million of revenue
in 1996. These acquisitions will complement Republic's recent acquisition of
Gene Evans Ford and the planned opening of four AutoNation USA used car
megastores in the Atlanta area. Two of the AutoNation stores will open later
this year, with two others opening in 1998.
Building the Dallas/Fort Worth Cluster
Rounding out its growing automotive retail cluster in the Dallas/Fort
Worth area, Republic has signed a definitive agreement to acquire the Hillard
Auto Group. One of the oldest and best known automotive dealerships in Texas,
the Hillard Auto Group includes Ford, Mazda, Kia, Buick, and Lexus franchises
on a 20-acre site in Fort Worth known as Hillard Auto Park. The dealerships
had revenue of approximately $135 million in 1996.
Republic's Dallas/Fort Worth automotive cluster already includes four
AutoNation USA used car megastores, a ValuStop used car store, Bankston
Enterprises, which includes Ford, Nissan, Lincoln-Mercury and Saab dealerships
in Dallas, and Bledsoe Dodge, which operates Dodge dealerships in Dallas,
Arlington, and Duncanville, Texas.
Dealerships in Seattle, Miami Areas
In Seattle, Republic has closed on the acquisition of BMW of Bellevue.
The dealership has been one of BMW's fastest growing franchises in each of the
last three years and had revenue of approximately $35 million in 1996.
Republic also has signed a definitive agreement to acquire the Appleway Auto
Group of Spokane, Washington, which includes Chevrolet-GEO, Mazda, Subaru,
Volkswagen, Audi, Mitsubishi, and Toyota franchises.
Republic has also signed a definitive agreement to acquire Hollywood
Nissan, a single store Nissan dealership in Hollywood, Florida. Upon closing,
management of the store will transfer to a general manager to be appointed by
Republic. The dealership had revenue of approximately $45 million in 1996.
Commenting on the various transactions, Steven R. Berrard, President and
Co-Chief Executive Officer of Republic, said, "These acquisitions add
significantly to Republic's growing presence in such strategic automotive
markets as Dallas/Fort Worth, Atlanta, Los Angeles, and South Florida. In
every case, we are adding depth and breadth to our market clusters. Each of
the dealers joining Republic enjoys an outstanding reputation for customer
service and each will now be sharing his or her extensive automotive retailing
experience with Republic's rapidly expanding family of premier automotive
retailers."
Upon the closing of each of the transactions announced today, Republic
will own and operate 39 dealer groups representing nearly 199 franchise
locations in 17 states.
Republic Industries, Inc., headquartered in Fort Lauderdale, Florida, is
the largest automotive retailer in the world. The company also owns and
operates the National, Alamo, and several other rental car companies, as well
as solid waste collection and disposal companies across the United States.
Dealership Franchise Listing
Southern California Auto Group
Los Angeles, California:
Audi, Bentley, Buick, Chevrolet, Ford(3), Honda, Infiniti(3),
Land Rover, Mazda, Mercedes-Benz, Nissan, Pontiac, Porsche, Rolls Royce,
Toyota, Volvo
Sutherlin Automotive Group
Atlanta, Georgia:
Chrysler Plymouth, Honda, Isuzu, Jeep Eagle, Nissan(2)
Birmingham, Alabama:
Chevrolet, Chrysler Plymouth, Dodge, Jeep Eagle, Pontiac
Tampa, Florida:
Toyota
Hillard Auto Group
Fort Worth, Texas:
Buick, Ford, Kia, Lexus, Mazda
BMW of Bellevue, Bellevue, Washington
Hollywood Nissan, Hollywood, Florida
SOURCE Republic Industries