Sonic Automotive, one of the nation’s largest retailers, recently announced the acquisition of RFJ Auto Partners. RFJ Auto consists of 33 franchised and used vehicle dealerships. This deal, expected to close in December, will add 3.2 billion dollars in annualized revenue for Sonic. Their stock is trading today at $55.96 a share, which also represents an all-time high for Sonic.
On today’s show we’re pleased to welcome Jeff Dyke, President of Sonic Automotive, to walk us through Sonic’s latest acquisitions and what the company is anticipating as we enter the final quarter.
Dyke begins by discussing the great synergy that Sonic and RFJ have with one another. He adds that while Sonic has invested a lot into its used car brand EchoPark, the balance sheet of the company has allowed for a greater expansion into new vehicle car dealerships. Sonic also acquired franchised dealership in Colorado, earlier this year.
Dyke says that Rick Ford, President and CEO of RFJ Auto, will stay on board for the better part of the next few years, along with his team. He adds that the RFJ organization has a lot of insight and resources to contribute. In return, Sonic is looking forward to sharing its technology, playbook, and processes with these new dealerships.
The future for Sonic Automotive looks bright from Dyke’s perspective. The dealer group will continue to add new regions, brands, and franchised dealerships to its portfolio. EchoPark continues to flourish as well with 30 stores currently operational, and many more planned in the future. In fact, Sonic projects that 90% of the country will be covered with an EchoPark store by 2025.
Prior to being elected President of Sonic Automotive back in 2018, Jeff Dyke held several positions in the company including EVP of Operations and Division COO for the Southeast. He first joined Sonic in 2005 as the Vice President of retail strategy, after spending nine years with AutoNation.
Be sure to watch our entire interview above to hear more from Jeff Dyke.
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