Republic Industries Adds Three Dealerships
25 November 1997
Republic Industries Adds Three Dealerships
Transactions Complement Clusters in Atlanta, Jacksonville, and Tampa Areas
FORT LAUDERDALE, Fla., Nov. 25 -- Republic Industries, Inc.
today announced that it has signed definitive agreements to
acquire three automotive dealerships in separate transactions valued at
approximately $30 million, payable in Republic common stock. The acquisitions
will help round out Republic's automotive retail clusters in Atlanta,
Jacksonville, and Tampa.
The transactions are subject to customary closing conditions, including
manufacturer and government approval.
Republic has acquired Lokey Honda and Lokey Isuzu, which both operate from
the same location in Clearwater, Florida, near Tampa. The dealerships had
combined revenue of approximately $45 million in 1996. As a result of the
transaction, Tom Lokey, 52, dealer principal of the two dealerships, will sign
a long-term employment agreement with Republic and will retain his duties at
the stores. The acquisition adds to Republic's automotive retail cluster in
the Tampa/St. Petersburg area, where the company already owns, or has an
agreement to acquire, Lexus of Clearwater and Lexus of Tampa Bay, Kenyon
Dodge, the Quinlan Automotive Group, Carlisle Motors, Coastal Cadillac,
Anthony Abraham Chevrolet, and two AutoNation USA megastores.
Also in Florida, Republic has acquired Sunrise Nissan of Orange Park and
Sunrise Nissan of Jacksonville. The Orange Park dealership had revenue of
approximately $40 million in 1996. The Jacksonville store was only acquired
by the sellers in March, 1997. Phil Risley, 36, the dealer principal, will
sign a long-term employment agreement with Republic and will retain his
responsibilities. Republic operates an AutoNation USA used car megastore in
Jacksonville and owns Mike Shad Ford and Mike Shad Chrysler-Plymouth in
Jacksonville.
In the Atlanta area, Republic has acquired Hub Ford of Tucker, Georgia.
The dealership had 1996 revenue of approximately $75 million. Hub Ford will
be a valuable addition to Republic's Atlanta cluster, where the company owns
or has agreements to acquire Gene Evans Ford and the Sutherlin Automotive
Group, and where it operates three AutoNation USA megastores. As a result of
the transaction, Paul Sanders, 62, dealer principal, will sign a long-term
employment agreement with Republic and will retain his responsibilities.
Inclusive of the transactions announced today, Republic will own, or will
have agreements to acquire, 48 dealer groups, representing 233 franchises in
17 states. Commenting on the transactions, Steven R. Berrard, President and
Co-Chief Executive Officer of Republic, said, "By rounding out its automotive
retail clusters in key markets, Republic will be in a better position to offer
consumers improved selection when they're shopping for a new or a used car.
The Lokey, Sunrise, and Hub acquisitions add to that capacity. We welcome all
of these dealers to our growing family of premier automotive retailers."
Republic Industries, Inc. is the largest automotive retailer in the world.
The company also owns and operates the National and Alamo auto rental
companies and several other auto rental companies, as well as solid waste
collection and disposal companies across the United States.
SOURCE Republic Industries, Inc.