Driving the news: Lithia Motors, Inc. has acquired four Kia and Hyundai dealerships in Memphis, Tenn., from Gossett Motor Cars, in a deal that closed Oct. 19.
For context: Gossett Kia, Gossett Hyundai, Gossett Kia South, and Gossett Hyundai South all sit along Covington Pike and Mt. Moriah Road, two of the Memphis area's top auto corridors, according to Kerrigan Advisors, which represented Gossett in the sale.
The four-pack includes two of the three Kia dealerships and two out of four Hyundai stores in metro Memphis, Kerrigan Advisors said in a release.
Lithia renamed the stores Hyundai Of Covington Pike, Hyundai Of South Memphis, Kia Of Covington Pike, and Kia Of South Memphis, according to its website.
What they’re saying: Lithia CEO Bryan DeBoer said the group is still adding stores in the Southeast during the group's third-quarter earnings call on Oct. 21.
"A few days ago, we acquired four Gossett Hyundai and Kia stores in Memphis, Tenn., adding $250 million in expected annualized revenues and strengthening our presence in the Southeast region," DeBoer said.
Lithia has acquired $1.17 billion in expected annualized revenue so far this year, according to the company's third-quarter earnings release.
DeBoer said on the call that Lithia has also divested "a quarter billion dollars of underperforming revenue" this year.
Lithia plans to acquire $2 billion to $4 billion in annualized revenue each year, according to its third-quarter investor presentation.
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Worth noting: Al Gossett founded Gossett Motor Cars in 1985.
He's CEO and runs the company with his brother, David, and his son, Brian.
The group still owns dealerships selling the Porsche, Audi, Volkswagen, Chrysler, Dodge, Jeep, Ram, Mitsubishi, Genesis, and Infiniti brands in the Memphis market.
"This was a strategic decision for our group," Al Gossett said in the release. "It allows our team to focus our efforts on our remaining eight dealerships, and Lithia's recent expansion in Memphis made them the right partner for our Kia and Hyundai stores."
Strategic note: Chris Gempton, senior vice president of Kerrigan Advisors, said in a release that it “is rare to find multiple points for both brands in one market, especially in the South.”
Kerrigan said it has now sold 32 franchises in the South in the last four months.
You can see this deal announcement and many more throughout the year by visiting the CDG Buy/Sell tracker at CDGbuysell.com, presented by The Presidio Group.
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