Hometown Auto Retailers to Offer Two New Brands: Mazda and Daewoo
18 October 1999
Hometown Auto Retailers to Offer Two New Brands: Mazda and Daewoo
WATERTOWN, Conn.--Oct. 18, 1999--Hometown Auto Retailers, Inc. announced the proposed addition of two new brands to its product mix, subject to manufacturer approval. Hometown Auto has entered into an agreement to acquire Wellesley Mazda which will be tucked into the Bay State Lincoln Mercury dealership in Framingham, Massachusetts. The new Daewoo franchise was awarded to Hometown Auto and will allow the Company to offer Daewoo automobiles at its Westwood Lincoln Mercury dealership in Emerson, New Jersey.The Mazda dealership's inventory will be brought into Hometown Auto's existing location in Framingham, Massachusetts. "Tuck-ins," like the Mazda acquisition, are at the core of Hometown Auto's acquisition strategy. They enable Hometown Auto to make more efficient use of existing service and parts departments, sales forces and administrative personnel while spreading overhead among increased revenues. After the Wellesley Mazda acquisition Hometown Auto's Bay State dealership will change its name to Bay State Lincoln Mercury Mazda. Wellesley Mazda is now located in a small, downtown setting while Bay State is situated on Route 9, a highly concentrated automobile row.
In commenting on these new developments, Joseph Shaker, President and Chief Operating Officer of Hometown Auto Retailers said, "The combined effect of these events will be to significantly increase revenue at each of the existing dealerships, diversify our product offerings and afford us the opportunity to draw from a broader customer base within our existing markets. The addition of the Mazda and Daewoo brands complements our existing product lines, providing the greater diversification that we have been seeking. We will now feature thirteen automotive brands."
Mr. Shaker continued, "Sales trends for the newly acquired car models have been very favorable. The Mazda dealership achieved $15 million in sales for 1998. The Daewoo models have had mass appeal among college students and New Jersey is home to a number of universities. A unique financing arrangement for these cars enabling college students to pay only the interest on loans until they graduate is a significant incentive for purchase."
Mr. Shaker concluded, "We are very pleased with the growth prospects and product diversity that these transactions enable us to achieve for Hometown Auto Retailers. We are committed to pursuing strategic tuck-ins and acquisitions that will bring us closer to our goal of becoming the dominant dealership group in the northeastern region of the United States."
Hometown Auto Retailers sells new and used cars and light trucks, provides maintenance and repair services, sells replacement parts and provides related financing, insurance and service contracts through 11 franchised dealerships located in New Jersey, New York, Connecticut, Massachusetts and Vermont. The Company's dealerships offer 13 American and Asian automotive brands, including Chevrolet, Chrysler, Daewoo, Dodge, Ford, Isuzu, Jeep, Lincoln, Mazda, Mercury, Oldsmobile, Plymouth and Toyota. The Company is active in two "niche" segments of the automotive market: the sale of Lincoln Town Cars and limousines to livery car and livery fleet operators and the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury factory authorized free-standing service center.
This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expressed or implied. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Therefore, there can be no assurance than any forward-looking statement will prove to be accurate.