Sonic Automotive, Inc. Announces Acquisition Of Two Dealerships
18 September 1998
Sonic Automotive, Inc. Announces Acquisition Of Two DealershipsCHARLOTTE, N.C., Sept. 17 -- Sonic Automotive, Inc. announced today that it has entered into agreements to acquire Infiniti of Charlotte in Charlotte, North Carolina and Tampa Volvo in Tampa, Florida. These dealerships have combined 1997 revenues of approximately $40 million. These transactions are valued at approximately $4.5 million and will be payable in cash. Sonic Automotive will finance these transactions with proceeds from its $125 Senior Subordinated Notes Offering that was completed in late July. Both acquisitions are expected to close in the fourth quarter of 1998. These acquisitions will further diversify Sonic's current operations in two markets by adding two luxury import lines. In the Tampa/Clearwater-area market, Sonic will now operate four dealerships including Tampa Volvo, Freedom Ford (formerly Ken Marks Ford), Toyota of Clearwater and Mitsubishi of Clearwater. In the Charlotte-area market, Sonic will have acquired its first luxury-car franchise and its ninth dealership. "Sonic continues to execute its strategies of building market share in existing markets and expanding its luxury import business," stated Mr. B. Scott Smith, Sonic Automotive, Inc.'s President and Chief Operating Officer. Mr. Smith further stated, "These dealerships have significant opportunities to grow earnings and revenues by applying Sonic's experience with these luxury brands as well as realizing economies of scale." Sonic Automotive, Inc. is one of the leading automotive retailers in the United States, with operations in Alabama, Florida, Georgia, North Carolina, Ohio, South Carolina, Tennessee and Texas. Upon completion of these acquisitions, Sonic will operate 38 dealerships representing 24 different brands and 13 collision repair centers. 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.