Major Automotive to Acquire Compass Lincoln-Mercury and Compass Dodge
17 February 1999
Fidelity Holdings Subsidiary Major Automotive Signs Contract to Acquire Compass Lincoln-Mercury and Compass Dodge; Regional Consolidation Enters New Jersey
KEW GARDENS, N.Y.--Feb. 17, 1999--Fidelity Holdings, Inc. today announced that in conjunction with its wholly-owned subsidiary Major Automotive, the Company signed a contract, subject to certain conditions, to acquire Essex County, New Jersey-based Compass Lincoln-Mercury and Compass Dodge.These potential acquisitions represent the Company's entry into the New Jersey market signaling another milestone in its regional acquisition strategy.
"The proposed acquisition of Compass Lincoln-Mercury and Compass Dodge clearly engage Major Automotive in areas it has been geographically and demographically planning to enter based on our regional acquisition strategy," stated Bruce Bendell, Chairman and CEO of Fidelity. "The Essex County location represents a prime target for Major Automotive wherein the Company can provide Compass Dodge and Compass Lincoln-Mercury with tremendous advantages and opportunities in a market Major knows well. The momentum of our recent activities including the announced plan to acquire Universal Kia and Five Towns Nissan Kia, further demonstrate that the strategy of regional acquisitions is the way of the future as the automotive industry continues to consolidate."
Jim Wallick, a Director of Fidelity and a 20 year New Jersey auto dealer, added, "New Jersey is a great place to do business. The acquisition of these dealerships by Major Automotive, I believe, will accelerate Major's planned growth in the tri-state area, particularly the Garden State."
Arthur and Scott Picon, President and Vice President of Compass Lincoln-Mercury and Compass Dodge, for the past twenty-five years, stated, "Joining forces with the Major Automotive Group will be positive for all parties. The advantages are obvious; combined knowledge, advertising strategy, experience, capital resources and market reach, make this merger a winner. The entry into the New Jersey market for Major Automotive Group is signaling the emergence of a new force in New Jersey automotive retailing."
Other companies experiencing growth through regional and/or national automotive consolidations strategies are: Lithia Motors , Republic Industries , Group 1 Automotive , United Auto Group , and Cross-Continent Auto Retailers .
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The company operates three divisions -- Automotive, Plastics and Technology. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area. The Technology Division operates under Computer Business Sciences and its newly formed IG2, Inc., subsidiary. The Plastics Division is developing proprietary products through existing patents.
Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities.
The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-K and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.