Lithia Motors buys 3 Florida stores, Sonic Automotive divests Nissan dealership

Despite profits slipping from pandemic highs, dealership buy/sell activity remains strong in 2024. In Q2, 84 dealerships changed hands—down 48% from Q1's record-breaking pace but only 14.5% lower than the first half of 2023, according to the Q2 Haig Report. Even with softer profits, dealerships are still making well above pre-pandemic levels, and dealers are betting big on acquisitions to drive long-term growth. Below are five key deals from August and September fueling Q3 M&A activity.

1. Lithia Motors scoops up 3 Florida dealerships, sells 3 more in Michigan

Haig Partners served as the exclusive sell-side advisor to Duval Motor Company in the sale of Duval Honda, Duval Acura, and Subaru of Gainesville to Lithia Motors. This marks Lithia’s first entry into these Florida markets and will add a projected annualized revenue of over $200 million.

Duval Motor Company, a fourth-generation family business that has been an automotive fixture in Jacksonville since 1916, made this strategic move to focus on expanding its flagship Duval Ford dealership—one of the oldest family-owned Ford stores in the U.S. This sale will help strengthen Duval's core Ford operations while preserving the Graham family’s century-long legacy in Jacksonville.

On the flip side, Lithia Motors offloaded three major metro Detroit dealerships—Suburban Infiniti, Nissan, and Volkswagen of Troy—in deals with LaFontaine Automotive Group and Rachel Savoie, daughter of Mike Savoie. These stores, part of Lithia's blockbuster 2021 Suburban Collection acquisition, mark a strategic move as Lithia shifts focus.

2. 1 Hyundai, 2 Nissan stores sell in Texas

Texas continues to be a hotspot for acquisitions. Pinnacle Mergers & Acquisitions recently facilitated the sale of three Texas dealerships: South Austin Nissan, Baytown Nissan, and Hyundai of Silsbee. Julie Herrera, expanding her IDEA Auto Group, acquired South Austin Nissan, which will be rebranded as City Limits Nissan. Herrera founded IDEA Auto in 2022, spinning off from Cavender Auto Family, and her group recently made Automotive News’ top 150 dealership groups in the U.S.

Meanwhile, Baytown Nissan was purchased by Raymond Palacios’ Bravo Auto Group, marking Bravo’s first foray into the Houston market. Mike Terry and Jarryd Carver, through their newly formed E1T1 Auto Group, acquired Hyundai of Silsbee, which will now operate as Mike Terry Hyundai. This is Terry’s fifth Texas dealership and his third brand since becoming a dealer in 2019.

3. Kia store sells in Georgia college town

Haig Partners advised the sale of Bulldog Kia in Athens, GA, to Butler Automotive Group. Bulldog Kia, owned by David Kernall and James Hammond, became one of Georgia’s top-performing Kia dealerships under Kernall’s leadership.

Kernall originally purchased the store in 2010 with Jim Keffer of Keffer Auto Group and later took full ownership with Hammond in 2020. The dealership has also been a community pillar, supporting charitable causes like Extra Special People, Breast Cancer Awareness, and Sparrow's Nest Athens. The acquisition expands Butler Automotive's presence in Georgia, strengthening its foothold in the region.

4. Sonic Automotive divests Washington Nissan dealership

Pinnacle Mergers & Acquisitions recently brokered the sale of Dave Smith Nissan in Spokane, WA, from Sonic Automotive to Xavier Cortes, who will rebrand the dealership as Cortes Nissan. Cortes now owns four dealerships in Washington.

Sonic Automotive, one of the nation’s largest auto retailers with over 100 dealerships in 24 states, has been actively divesting in select markets. While Nissan dealerships have been facing valuation declines, some buyers see potential for high returns, especially if the brand turns things around.

5. North Carolina Honda store changes hands

The Presidio Group advised MileOne Autogroup on the sale of Hall Honda Huntersville, located outside Charlotte, NC, to Hudson Automotive Group. MileOne, which acquired the dealership in 2020, decided to sell to focus on its core markets.

Hudson Automotive, based in Charleston, SC, continues its rapid growth, with this purchase coming just five months after acquiring a nearby Toyota dealership. The acquisition bolsters Hudson’s strong ties to Honda, marking its 10th Honda store. With this sale, MileOne now operates 70 franchises, primarily in the Mid-Atlantic region.

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