Asbury offloads Chevy store, Feldman Auto scoops Chrysler/Jeep brands, S.C. dealerships sell

Despite dealership profitability falling from its historic pandemic peaks, dealership buy/sell transactions are setting a record pace so far in 2024. According to Haig Partners, dealers made $3,500 in gross profit per new vehicle sold in Q2, almost double what retailers were making before 2020. These funds, combined with a stockpile of cash from the last 3 years are being deployed into new investments. Here are 5 transactions from July and August worth noting.

1. Feldman Automotive Group acquires Chrysler Jeep dealership.

Feldman Automotive Group is expanding its Michigan presence by acquiring a Lavonia-based dealership previously owned by Colleen McDonald. In 2009, McDonald lost the store due to the General Motors and Chrysler bankruptcies but battled back to regain ownership. Feldman now owns and operates 21 automotive and RV/Airstream dealerships across the Midwest, including six with actor Mark Wahlberg. On the surface, investing in a Stellantis-backed dealership might seem like a gamble, but these dealerships are fetching lower multiples making them an attractive investment if the brand can turn things around. 

2. Asbury Automotive Group sells Nalley Chevrolet to ALM Automotive Group.

Asbury Automotive Group is offloading an Atlanta-based dealership right down the road from its corporate headquarters. It’s not uncommon for large, publicly traded groups to frequently divest certain stores from their dealership portfolios, and dealership demand in the South is strong.

Kerrigan Advisors, who facilitated the deal, has represented more than 80 franchises sold in the region since 2020. On top of that, Atlanta is one of the top growth markets in the country right now. The city’s economy has grown 32% in just 5 years and recently it was named the no. 1 “Best Place to Live” by Money Magazine.

Asbury Automotive Group is one of the largest automotive retailers in the nation, with $14.8 billion in revenue reported in 2023  from 155 dealerships and 37 collision centers, located in 15 states.

3. River States Truck and Trailer sells 2 La Crosse Truck Centers.

In two separate transactions, River States Truck and Trailer and Joe Laux sold La Crosse Truck Center Ford to Dahl Automotive and La Crosse Truck Center Mack-Isuzu to Kriete Truck Centers. Sell-side advisor Haig Partners completed this complex transaction by splitting up Laux’s empire knowing that a single buyer likely wouldn’t be approved to acquire all the franchises. La Crosse Truck Center Ford dealership is one of the Ford’s last remaining medium-duty-only dealerships. But with the success of Ford Pro, Dahl will be able to further scale their commercial vehicle operations in Minnesota and Wisconsin. 

4. Anderson Automotive Group sells S.C. Chevrolet and Nissan dealerships.

Escude Automotive Group has picked up 2 dealerships from Anderson Automotive Group, according to sell-side advisor The Presidio Group. The stores are 2 of the 7 that Anderson Automotive Group acquired in 2023 from MCE Automotive Group. 

“After completing the MCE transaction last year, we decided to divest these two stores and direct our resources to other needs and opportunities,” said Fred Anderson, chairman of Anderson Automotive Group in a press release.

Following the sale, Anderson Automotive Group now operates 16 dealerships across North and South Carolina. For Buyer Mark Escude II, things have come full circle. Escude was previously part of the leadership team under MCE. 

“Our family is fortunate to call the upstate region home, and we’re eager to get back to work serving our local community,” he commented.

5. Alin Navidi acquires Covina Volkswagen from SRO Group and Greg Bozzani.

Covina Volkswagen, an award-winning dealership with a long history dating back to 1911, has been a cornerstone of the Bozzani family's automotive legacy for over a century. Greg Bozzani represents the third generation of ownership and has been in the business since 1984. The purchase marks a significant step for Alin Navidi, who has been hunting for the right opportunity for full ownership of a franchise dealership after previously partnering at Coachella Valley Volkswagen. Performance Brokerage Services served as the exclusive advisor for the transaction.

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