Republic Industries Acquires Dealerships in Five States
14 December 1998
Republic Industries Acquires Dealerships in Five States With over $1.1 Billion in Annualized Revenue
Also Begins Ford Motor Company Partnership with Rochester (NY) Auto Collection
FORT LAUDERDALE, Fla., Dec. 14 -- Republic Industries, Inc.
today announced that it has signed definitive agreements to
acquire 10 dealership groups comprising 31 automotive retail franchises in a
series of separate transactions that will contribute approximately $1.1
billion of annualized revenue to Republic's operations. The aggregate
purchase price of approximately $240 million will be paid in cash. Each
transaction is subject to customary closing conditions, including manufacturer
and government approval. The dealerships are located in California, Florida,
Georgia, Illinois and Minnesota.
In northern California, Republic is acquiring substantially all of the
Tasha Automotive Group (Dodge, Chrysler-Plymouth, Jeep-Eagle, Honda, Toyota,
Nissan, Acura, Hyundai and Isuzu franchises), the largest privately held chain
of automotive dealerships in the San Francisco Bay area. The Tasha dealerships
are located in Roseville, Santa Clara, Hayward and Fremont. Republic already
owns five dealerships in the San Francisco area. After the closing, Tasha's
management team will continue to direct the day-to-day operations of the
dealerships. Acquisition of the Toyota franchise is subject to compliance
with a framework agreement between Republic and Toyota Motor Sales U.S.A.
In southern California, Republic is purchasing Arrow Volvo in Compton; the
Gunderson Automotive Group (Chevrolet and Nissan franchises) in El Monte; and
Peyton Cramer Acura (Acura and Isuzu franchises) in Torrance. Republic
previously acquired the other dealerships of the Peyton Cramer Automotive
Group. The dealerships complement Republic's existing operations in the
greater Los Angeles area, which include 34 dealerships and four AutoNation USA
used car megastores.
Gunderson-Ihle Chevrolet is the number one Chevrolet dealership in
southern California, while Gunderson-Ihle Nissan is the third-largest Nissan
dealership in California. A free-standing collision center is located at the
Chevrolet dealership.
In Florida, Republic is acquiring Sunset Pontiac-GMC of Clearwater and
Sunset Pontiac-GMC of Port Richey, as well as L.P. Evans Motors, which
operates Mercedes-Benz and Nissan dealerships in Miami and a Nissan dealership
in Fort Lauderdale. Republic has an extensive automotive retail network in
Florida, with over 60 new car dealerships and 10 AutoNation USA used car
megastores.
Republic is also acquiring Pope Chevrolet and Pope Imports, a Mitsubishi
franchise, which are located in Roswell, Georgia. Republic already owns eight
dealerships in the metropolitan Atlanta area and four AutoNation USA
megastores.
In Illinois, Republic is acquiring Elmhurst Dodge/Kia in Elmhurst and
Elmhurst Dodge in Des Plaines. Dealer principal William Callas will remain
after the closing. Elmhurst Dodge is the number one Dodge dealership in the
Chicago area and also one of the top retail volume dealerships in the Midwest.
In addition, Republic is acquiring Woodfield Ford of Schaumburg. Republic
also owns Libertyville Toyota in the greater Chicago area and an AutoNation
USA store in Downers Grove.
Republic is also acquiring Tousley Ford of White Bear Lake, Minnesota, the
leading volume Ford dealer in the Twin Cities region. The acquisition marks
Republic's first foray into Minnesota. Dealer principals Tom Bennett and Ron
Glassman will remain at the dealership after the closing. In addition to the
dealership, the purchase includes the market's largest volume conversion van
center, a stand-alone collision center and one-acre storage lot. Tousley Ford
has operated as a one-price dealership since 1992.
"These acquisitions strengthen key markets for Republic in the San
Francisco, Los Angeles, Atlanta, Tampa, south Florida and Chicago metropolitan
areas," said Steven R. Berrard, Co-CEO of Republic Industries. "The purchase
of Tousley Ford marks our entry into the Twin Cities retail automotive market,
where we already have a huge presence since the headquarters of our National
Car Rental operations is there."
In a related development last week, Republic said the partnership between
Ford Motor Company's Ford Retail Network and Republic Industries launched the
Rochester (NY) Auto Collection. The Rochester Auto Collection consists of
eight Ford franchises and one Lincoln-Mercury franchise in the Rochester area.
Ford owns 51 percent of the Collection; Republic owns 49 percent and will
operate the dealerships on a day-to-day basis.
Republic Industries, Inc. is the world's largest automotive retailer. The
Company owns the nation's largest group of franchised automotive dealerships
and operates the AutoNation USA pre-owned vehicle megastore chain. Republic
also owns and operates National Car Rental Systems, Inc., Alamo Rent-A-Car,
Inc. and CarTemps USA. Additionally, the Company owns 63.9 percent of
Republic Services, Inc. , one of the leading providers of non-
hazardous waste collection and disposal services in the United States.