AutoNation to Acquire Dealer Groups

AutoNation Inc., the nation's largest auto-dealer chain by revenue, agreed to purchased two smaller dealer groups, adding to a string of acquisitions in car retailing as U.S. light-vehicle sales set the strongest pace in more than a decade.

AutoNation is acquiring Carl Gregory Enterprises and Valley Motors Auto Group in deals that represent more than $600 in annual revenue. The purchase of Carl Gregory Enterprises, a group that generated $480 million in sales in 2014, is the largest deal by revenue for the Fort Lauderdale, Fla.-based chain since 2001.

AutoNation, with $19 billion in 2014 group revenue, is the No. 1 auto retailer in the U.S., outpacing Penske Automotive Group by about $2 billion in sales and No. 3 retailer Group 1 Automotive Inc. by nearly $10 billion, according to Automotive News, a trade publication.

The deal follows billionaire investor Warren Buffett's entry into the auto industry earlier this year when Berkshire Hathaway Inc. closed its acquisition of the Van Tuyl Group, the nation's fifth-largest dealership chain with 81 stores in 10 states. Mr. Buffett has said he'll look to expand that business.

AutoNation's acquisitions includes 16 stores selling a variety of domestic and foreign brands in the southeast and the Baltimore and Washington, D.C. markets.

Chief Executive Mike Jackson in a statement said the company continues to "seek acquisitions to leverage our scale, expand the AutoNation brand and provide a peerless experience to more customers."

Write to John D. Stoll at [e-mail]

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(END) Dow Jones Newswires

August 18, 2015 10:25 ET (14:25 GMT)

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