Driving the news: David Luther of Luther Automotive Group purchased under a historic nameplate two dealerships selling Volkswagen and Mazda in St. Cloud, Minnesota, from Linda Eich-Desjardins. The deal closed February 23.
For context: Eich Motor Co., acknowledged as one of the country’s longest-running dealerships, was established in 1898 by A.A. Eich under a different moniker, selling farm equipment, wagons, and buggies.
The company sold its first Studebaker on March 13, 1910, for $1,413, according to a local news story. It donned the name used today in the 1950s, and got its first Volkswagen franchise in 1960, followed by Mazda in 1977.
Dealership names Eich Mazda and Eich Volkswagen will remain, according to Performance Brokerage Services, which represented the sellers in the transaction.
The deal also included real estate, a storage facility on the property and a detail shop that once housed one of the group’s original dealerships after a location change, Matt Willis, a Performance Brokerage managing partner, told CDG News.
What they’re saying: Willis said Eich-Desjardins, the fourth-generation president who ran the dealerships with her son, Matt Desjardins, wanted her employees treated well.
Willis said the group’s rich history, the stores’ location and image-compliant dealerships, all made for an attractive deal that drew multiple offers.
“The reason she went this route was just knowing how well [Luther Automotive] would handle and care for the employees,” Willis said. All staffers were expected to stay on.
Bottom line: Location remains a factor in the bustling buy-sell market and Willis said St. Cloud is a growing city that attracts a lot of buyer interest.
You can see this deal announcement and many more throughout the entire year by visiting the CDG Buy/Sell tracker at CDGbuysell.com, powered by:
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