LMP to buy dealerships in Florida and Texas

LMP Automotive Holdings Inc. said Monday that it plans to buy an 85 percent stake in 10 new-vehicle franchised stores in Florida and separately buy five import dealerships in Texas.

The two deals, if completed, would add a combined $937 million in annual revenue to the growing publicly traded group that has just more than a half-dozen franchised dealerships currently, with several deals under contract. The company said it would spend $211.6 million on the two acquisitions, including real estate.

LMP said it would buy an 85 percent stake in the Alan Jay Automotive Network of Sebring, Fla., paying $50 million for the dealerships’ goodwill and about $44.1 million for real estate. LMP said in addition to cash and debt it could finance the deal with as much as $25 million of common stock.

The retailer said the deal includes 21 franchises including mainly domestic brands, plus Kia, Nissan, Toyota, Maserati and Alfa Romeo.

The transaction includes 10 new-vehicle franchised dealerships, a used-vehicle store and a commercial fleet operations center, said Alan Jay Wildstein, CEO of the Alan Jay Automotive Network. Wildstein said the LMP transaction does not include the group’s half-dozen stores in Michigan or Miami.

That transaction, expected to close in the fourth quarter, would generate about $345 million in annual revenue, LMP said.

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