LMP Automotive Holdings, Inc. purchases 5 McGavock dealerships
LUBBOCK, Texas (KCBD) - On Sept. 13, LMP Automotive Holdings, Inc. announced it will purchase five McGavock dealerships in Texas.
McGavock Auto Group is operated out of Lubbock. The purchase agreement was effective as of Sept. 10. and includes: McGavock Auto Group, L.L.P., McGavock Nissan of Abilene, L.L.P., McGavock Nissan of Amarillo, L.P., McGavock West Texas Motors, L.P., and McGavock Nissan of San Marcos, L.P.
The asset purchase price is about $61.5 million, according to the SEC filing. Dealerships will continue to operate under the McGavock name.
The purchase is expected to close in the fourth quarter of 2021. It is unknown why the autogroup decided to sell.
LMP Automotive Holdings, Inc. (NASDAQ: LMPX), an e-commerce and facilities-based automotive retailer in the United States, today announced its entry into a definitive acquisition agreements to purchase five import dealerships in Texas, including the associated real estate, generating approximately $592 million in annualized revenue and $35 million in adjusted EBITDA.
- Expected to close in the fourth quarter of this year.
- Aggregate purchase price of approximately $62.5 million for goodwill expected to be funded through a combination of cash on LMP’s balance sheet, up to $6.25 million in common stock and debt financing.
- Aggregate real estate price of approximately $55 million
- Expected to add approximately $35 million in adjusted EBITDA or $2.95 per share in 2022.
Richard Aldahan, LMP’s Chief Operating Officer, stated, “This acquisition will further expand our management team and footprint in the central region. This will be the final acquisition we expect to close this year, which completes our Stage 2 acquisition plan. All future perspective acquisitions we expect to consolidate in our Stage 3 plan for closings in 2022.”
Sam Tawfik, LMP’s Chief Executive Officer, stated, “Upon closing this acquisition, combined with our previously announced acquisitions, LMP’s total franchise and dealership count will be 56 and 40, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $2.2 billion, $137 million, and $12.27, respectively.”
ABOUT LMP AUTOMOTIVE HOLDINGS, INC.LMP Automotive Holdings, Inc. (NASDAQ: LMPX) is a growth company with a long-term plan to profitably consolidate and partner with automotive dealership groups in the United States. We offer a wide array of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, finance and insurance products and automotive repair and maintenance.
Our proprietary e-commerce technology and strategy are designed to disrupt the industry by leveraging our experienced teams, growing selection of owned inventories and physical logistics network. We seek to provide customers with a seamless experience both online and in person. Our physical logistics network enables us to provide convenient free delivery points for customers and provide services throughout the entire ownership life cycle. We use digital technologies to lower our customer acquisition costs, achieve operational efficiencies, and generate additional revenues. Our unique growth model generates significant cash flows, which funds our innovation and expansion into new geographical markets, along with strategically building out dealership networks, creating personal transportation solutions that consumers desire.
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