LUBBOCK, Texas (KCBD) – On September 13, LMP Automotive Holdings, Inc. announced the purchase of five McGavock dealerships in Texas.
McGavock Auto Group is operated from Lubbock. The purchase agreement came into effect on September 10 and includes: McGavock Auto Group, LLP, McGavock Nissan of Abilene, LLP, McGavock Nissan of Amarillo, LP, McGavock West Texas Motors, LP and McGavock Nissan of San Marcos, LP
The purchase price for the asset is around $ 61.5 million, according to the SEC filing. The dealers will continue to operate under the McGavock name.
The purchase is expected to be finalized in the fourth quarter of 2021. It is not known why the automotive group decided to sell.
LMP Automotive Holdings, Inc. (NASDAQ: LMPX), an e-commerce and facilities-based automotive retailer in the United States, today announced the signing of definitive acquisition agreements for the purchase of five dealerships in the United States. importation into Texas, including associated real estate, generating approximately $ 592 million in annualized revenue and $ 35 million in adjusted EBITDA.
- Closing is scheduled for the fourth quarter of this year.
- The aggregate purchase price of approximately $ 62.5 million for goodwill is expected to be funded by a combination of cash on LMP’s balance sheet, up to $ 6.25 million in common stock and debt financing.
- Total real estate price of around $ 55 million
- Is expected to add approximately $ 35 million to Adjusted EBITDA or $ 2.95 per share in 2022.
Richard Aldahan, COO of LMP, said: âThis acquisition will further expand our management team and our presence in the central region. This will be the last acquisition that we plan to complete this year, which complements our Phase 2 acquisition plan. All future acquisitions in perspective that we plan to consolidate into our Phase 3 plan for closings in 2022 . “
Sam Tawfik, CEO of LMP, said: âUpon closing of this acquisition, combined with our previously announced acquisitions, the total number of LMP franchises and dealers will be 56 and 40 respectively, with consolidated annualized revenue. , adjusted EBITDA and adjusted EBITDA per share. the rate is expected to be around $ 2.2 billion, $ 137 million and $ 12.27, respectively.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC.LMP Automotive Holdings, Inc. (NASDAQ: LMPX) is a growing company with a long-term plan to consolidate and profitably partner with auto dealer groups in the United States. We offer a wide range of products and services spanning the entire lifecycle of vehicle ownership, including new and used vehicles, financing and insurance products, and repair and maintenance. automobile.
Our proprietary e-commerce technology and strategy is designed to disrupt the industry by leveraging our experienced teams, a growing selection of owned inventory and a 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 free and convenient delivery points to customers and to provide services throughout the property lifecycle. We use digital technologies to reduce our customer acquisition costs, achieve operational efficiency and generate additional revenue. Our unique growth model generates significant cash flow, which funds our innovation and expansion into new geographic markets, as well as the strategic construction of dealer networks, creating the personal transportation solutions that consumers want.
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