Four dealers expanded in the second quarter with single-store acquisitions in California, Virginia, Kansas and Indiana.
Here’s a quick look at the transactions involving domestic and import brand stores. One transaction involved one of Automotive News‘ top 150 dealership groups.
Martin Management Group, based in Bowling Green, Ky., on June 9 bought its first Nissan dealership when it acquired Ross Nissan of El Monte in California from Ross Automotive Group.
“We were interested in working with Nissan as a manufacturer given their robust product cadence coming in over the next about 18 months,” Chad Martin, the group’s president, told Automotive News.
The dealership has been renamed El Monte Nissan. The Nissan store is the group’s second California dealership.
Martin Management has dealerships spread across Kentucky, Ohio, West Virginia, Tennessee, South Carolina and California with a brand portfolio of Subaru, Hyundai, Genesis, Kia, Honda, Ford, Volkswagen, Audi, Chrysler, Dodge, Jeep and Ram. It also has three motorcycle dealerships.
“I think it’s a unique opportunity right now where sellers are able to demand fairly high multiples and high real estate values,” Martin said. “But conversely, buyers are able to partake in historically low interest rates, which makes it a pretty compelling business argument for expansion during this time.”
Martin Management ranks No. 145 on Automotive News’ list of the top 150 dealership groups based in the U.S., retailing 5,539 new vehicles in 2020.
Jason Stopnitzky, co-founder of Performance Brokerage Services, an Irvine, Calif., buy-sell advisory, brokered the transaction.
Darryl Huften and Nancy Huften bought a second Ford dealership in southern Virginia this month when they purchased Barkhouser Ford-Lincoln in Danville.
The Huftens renamed the store Apple Ford of Danville after the transaction with James Barkhouser closed June 3.
James Barkhouser is the son of founder Richard Barkhouser. The store had been a family operation for 63 years.
Darryl Huften told Automotive News that the transaction did not include the Lincoln brand.
“We are thrilled to lay roots in Danville and continue the family-owned legacy established by the Barkhouser family,” the Huftens, who also have owned Apple Ford in Lynchburg, Va., since May 2005, said in a news release. “While the name is changing to Apple Ford, the familiar faces that made this business what it was for decades will remain.”
Barkhouser Ford’s longtime general manager Benjy Powell is continuing in his position.
No broker was used in the transaction, Darryl Huften said.
Conklin Cars on June 1 bought Robbins Motor Co. of Newton in Kansas, a Chrysler-Dodge-Jeep-Ram store, from Mark Robbins.
Conklin has moved the Chrysler, Dodge, Jeep and Ram brands to its campus in Newton, which also includes Ford and Chevrolet stores. Those stores operate as Conklin Cars of Newton, said Sam Conklin, an owner of Conklin Cars. The former site of Robbins Motor Co. will be used for another purpose, Conklin said.
“We think it will be really nice to have most of the domestics” in one location, Conklin told Automotive News.
The company also sells Buick, GMC, Honda, Toyota and Nissan vehicles at other dealerships in Hutchinson and Salina, Kan.
Robbins is retaining a Chrysler-Dodge-Jeep-Ram-Fiat dealership in Manhattan, Kan.
No broker was used in the transaction.
Pilson Auto Centers bought 500 Automotive Chevrolet-Buick-GMC in Clinton, Ind., on April 29 from Deep Vein Coal Co., said Edward French, the former dealer operator of the store.
The dealership has been renamed Pilson Chevrolet-Buick-GMC. Clinton is located in central Indiana.
Pilson Auto, based in Mattoon, Ill., owns three other dealerships and a motorsports store in central Illinois.
The seller was represented by Mallor Grodner, a Bloomington, Ind., law firm that also does business asset sales.