According to the Q4 2022 Haig Report, which tracks trends in auto retail and their impact on dealership values, dealership profits reach new peaks in 2022, driving the robust demand for buy/sell transactions. March was no different. Below are four significant M&A transactions from the past month.
1. Martin Automotive Group buys Toyota dealership
On March 8, the Tim Lamb Group facilitated the finalization of the sale of the Motorcars Toyota Dealership to the Martin Automotive Group. The Cleveland Heights, Ohio-based new and used car dealership will now operate under the name Martin Motors of Cleveland, Inc. and will do business as Toyota Cleveland Heights. The dealership’s previous owner, Matt Gile, said that it was “imperative” to choose the proper firm to facilitate the transaction and expressed his satisfaction with the Tim Lamb Group. Per the agreement, Martin Automotive Group also obtained Motorcars Collision and Body Shop, which is based in the same area.
2. Murgado Automotive Group expands in Chicago
Murgado Automotive Group also expanded its presence in March, announcing the acquisition of six Illinois-based Motor Werks Auto Group dealerships that reportedly included BMW, Cadillac, Honda, Infiniti, Porsche, and Mercedes-Benz stores. Murgado Automotive Group has been looking to expand its presence in the Chicago area, where it already owned two Honda dealerships as well as an Acura dealership and a Volkswagen dealership. The company’s Chief Executive Officer, Mario Murgado, stated he has been familiar with Motor Werks for several decades and is “proud and excited to welcome Motor Werks to [Murgado’s] family of dealerships.” The names of the dealerships were not changed as part of the sale.
3. LaFontaine Automotive Group bets on Chevy
LaFontaine Automotive Group announced in March that it had acquired Plymouth, Michigan-based Lou LaRiche Chevrolet. As part of the acquisition, the name of the dealership would be changed to LaFontaine Chevrolet Plymouth and Kelley LaFontaine would serve as the dealer’s operations manager. In a press release, Kelley LaFontaine stated that her auto group would “quickly align [itself] with the organizations and initiatives making a positive impact on fellow residents and business alike.” LaFontaine Automotive Group’s CEO, Ryan LaFontaine, added that the acquisition was “a perfect match.” Financial details of the transaction were not disclosed.
4. Randy Marion Automotive Group enters Hyundai and Kia brands
Randy Marion Automotive Group was also busy in Q1 2023, completing four purchases throughout the first few months of the year. This included the March 6 purchases of North Carolina-based Gerry Wood Dodge of Salisbury (now Randy Marion Chrysler-Dodge-Jeep-Ram of Salisbury), Gerry Wood Honda (now Randy Marion Honda), and Gerry Wood Kia (now Randy Marion Kia). These acquisitions marked the first Honda and Kia dealerships for Randy Marion Automotive Group, and the company’s Chief Operating Officer DJ Heller said he was “excited for the diversity of [Randy Marion’s] group now with having a couple more imports.”
Just two weeks earlier, Randy Marion Automotive Group had also purchased West Jefferson Chevrolet in West Jefferson, Carolina, and rebranded it as Randy Marion Chevrolet-Buick-GMC of West Jefferson.
