Sonic Automotive, Inc. Announces Acquisition of Three Dealerships
28 April 1998
Sonic Automotive, Inc. Announces Acquisition of Three Dealerships
CHARLOTTE, N.C., April 27 -- Sonic Automotive, Inc.
announced today it has entered into definitive agreements to
acquire Century BMW and Heritage Lincoln-Mercury-Jaguar. Included in these
transactions are a BMW dealership located in Greenville, South Carolina; a BMW
dealership located in Spartanburg, South Carolina and a Lincoln-Mercury-Jaguar
dealership located in Greenville, South Carolina. These dealerships had total
revenues of approximately $107 million in 1997.
These transactions are accretive to Sonic Automotive. Convertible
Preferred Stock will be issued for approximately 40% of the purchase price.
The remainder of the purchase price will be payable in cash. Closing of these
transactions is expected in the second quarter or early part of the third
quarter of 1998.
"We continue to improve our product diversity and to increase our revenues
from luxury brands. Greenville-Spartanburg is another of the medium-sized
markets we believe represent our best opportunities and have targeted for
acquisitions," stated Mr. 0. Bruton Smith, the Company's Chairman and Chief
Executive Officer.
Mickey Joy, President and General Manager of Century BMW for over twenty
years, will continue to be Century BMW's General Manager. The
Greenville-Spartanburg area is home To BMW's United States manufacturing
facility. The Greenville and Spartanburg BMW dealerships currently enjoy the
highest BMW market penetration in the United States.
Mr. Ervin Williamson will continue as General Manager of Heritage
Lincoln-Mercury-Jaguar. Under Mr. Williamson's leadership, Heritage won the
1995 Ford Chairman's Award, 1993-1997 Customer Excellence Award, 1995 Jaguar
Dealer Achievement Award and became the largest volume Lincoln-Mercury
dealership in North and South Carolina. These dealerships will be included in
Sonic Automotive's Mid-South Region and will report to Jeffrey C. Rachor, the
Company's Regional Vice President for the Mid-South.
"We're pleased to continue to build our management team as well as acquire
quality dealerships. Dealership management is the key to our long-term
success and consistent profitability," stated Mr. Rachor.
On March 23, 1998, Sonic Automotive completed its purchase of Clearwater
Toyota, Clearwater Mitsubishi and The Clearwater Collision Center. On March
24, 1998, Sonic Automotive announced acquisition of the Hatfield Automotive
Group and Capitol Group.
Upon completion of these acquisitions, Sonic Automotive will operate
34 dealerships representing 21 different brands and 10 collision repair
centers. Sonic Automotive's 1997 proforma revenues including closed and
announced 1998 acquisitions will be approximately $1,675 billion.
Included herein are forward-looking statements, including statements with
respect to anticipated revenue growth. There are many factors which affect
management's views about future events and trends of the Company's business.
These factors involve risk and uncertainties that could cause actual results
or trends to differ materially from management's view, including without
limitation economic conditions, risks associated with acquisitions and the
risk factors set forth from time to time in the Company's filings with the
Securities and Exchange Commission.
SOURCE Sonic Automotive, Inc.