M&A activity significantly ramped up last year, and it doesn’t seem to be slowing down. With supply chain shortages, high prices, and the introduction of more electric and hybrid vehicles, many dealerships are continuing to partake in M&A transactions at a high rate. Let’s take a look at some of the recent deals throughout the country.
Linn Powerhouse Holdings, LLC
Linn Powerhouse Holdings, LLC, a subsidiary of Jim Butler Auto Group, purchased two dealerships in Mexico, including a Ford dealership and a Stellantis dealership. It plans on moving these dealerships to the existing Jim Butler Chevrolet lot in Centralia, Pennsylvania, and expects the relocation to be completed in 2024. Jim Butler Auto Group’s president Brad Sowers said the acquisitions are part of the group’s overall goal of providing customers with “the same expertise and customer service that our Powerhouse dealerships are known for.”
Last month, Gee Automotive acquired three dealerships from Oregon-based Dick’s Auto Group, with DCG Acquisitions facilitating the transaction. The Portland-area dealerships will be rebranded as Tonkin Hillsboro Chevrolet, Tonkin Hillsboro Chrysler-Jeep-DodgeRam, and Tonkin Hillsboro Ford. DCG CEO Dave Cantin said the recent acquisitions are “a perfect example of how the organization is able to continually grow in specific markets while remaining consistent with their investment strategy.” Gee Automotive CEO Ryan Gee added that his company is also “looking forward” to working with DCG for future transactions.
SuperStore Auto Group
DCG Acquisitions also assisted in SuperStore Auto Group’s acquisition of three Delray Auto Group dealerships. These include Hyundai, Genesis, and Acura dealerships in Delray Beach, Florida. SuperStore Auto Group’s CEO John Staluppi said this was the seventh time DCG Acquisitions had helped his group in an M&A transaction, and DCG Acquisitions CEO Dave Cantin said the move is “more strongly positioning SuperStore Auto Group to capture additional market share in the highly competitive Southeast market.”
Van Tuyl Companies and Kaminsky Automotive
As of February 8, Hitchcock Automotive has reportedly sold three of its Toyota dealerships in California, with two being sold to Van Tuyl Companies and one being sold to Kaminsky Automotive. Van Tuyl Companies acquired Northridge Toyota and Toyota of Santa Barbara, while Kaminsky Automotive acquired Puente Hills Toyota. The dealerships are three of the highest-volume dealers in the area and have grown exponentially since Hitchcock Automotive was founded in the early 1970s. All three sales were facilitated by Kerrigan Advisors, which has assisted in nearly 150 transactions in the past seven years.
PSD Automotive Group
At the end of January, Haig Partners LLC announced it had assisted in the purchase of David McDermott Lexus and Dave McDermott Chevrolet by PSD Automotive Group. According to its press release, Haig Partners said it has assisted in 39 transactions in the Northeast since 2019. The owner of the Connecticut-based dealerships, David McDermott, said he was retiring and, due to the currently high M&A rate, he “decided that the time was right to sell the dealerships.” He added that PSG Automotive Group would be keeping his dealerships’ employees as well as the stores’ names.
Springhill Automotive Group
Haig Partners LLC was also the exclusive sell-side advisor to the Mitchell Family Office on the sale of Toyota of Bristol, to Springhill Automotive Group. The owner of the dealership, Mark Mitchell, said his family was “exploring the strategic decision of selling our Toyota of Bristol location and returning [their] complete focus to the family’s core healthcare business opportunities.” Tal Vickers, Principal of Alabama-based Springhill Automotive Group, said his group is “look[ing] forward to being a part of the Bristol community and representing the Toyota brand.”
Editor’s note: This post has been updated for accuracy and comprehensiveness.
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