Sonic Automotive Announces Agreement to Acquire Two Las Vegas Cadillac Dealerships
28 July 2000
Sonic Automotive Announces Agreement to Acquire Two Las Vegas Cadillac DealershipsCHARLOTTE, N.C. - Sonic Automotive, Inc. announced today that it has entered into an agreement to acquire two Cashman Cadillac dealerships in Las Vegas, Nevada, and upon closing, will represent Sonic's fourth and fifth operations in the Las Vegas area. The acquisitions are subject to customary closing conditions, including manufacturer's approval, and are expected to close in the fourth quarter of 2000. With the addition of the Cashman Cadillac dealerships in Las Vegas, the Company will have acquired nine dealerships to date in 2000 totaling approximately $605 million in 1999 revenues. Sonic will continue its disciplined hub and spoke acquisition strategy, focusing their efforts on existing and select new markets across the nation. Sonic's efficient operation techniques have spurred an average same store sales growth of 9% per year at Sonic dealerships, which exceeds the industry average. O. Bruton Smith, the Company's Chairman and Chief Executive Officer, stated, "Las Vegas is an exciting market and the acquisition of these two Cashman Cadillac dealerships continues Sonic's growth in brand diversification and market share in the greater Las Vegas metro area. We plan on continuing the Cashman family's tradition of exemplary service for their customers and providing a positive work environment for their valued employees. We look forward to future growth opportunities within the Las Vegas market." This announcement comes on the heels of Sonic Automotive's receipt of zoning approval for the new Honda West location on West Sahara in Las Vegas. About Sonic Automotive, Inc. Sonic Automotive, Inc. is the second largest automotive retailer in the United States. Including pending acquisitions, the Company operates 173 franchises and 31 collision repair centers in Alabama, California, Florida, Georgia, Maryland, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia. Sonic had revenues of $3.4 billion in 1999, an increase of 109% over 1998. The revenue run rate is estimated at more than $6 billion for 2000. The Company has also experienced eleven consecutive quarters of greater than 50% growth in earnings per share.