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Sonic completes $700M acquisition of RFJ Auto Companions

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Sonic Automotive Inc. has accomplished what CEO David Smith has known as the group’s largest acquisition ever with its $700 million buy of RFJ Auto Companions Holdings Inc.

The acquisition, which was revealed in September and closed on Monday, consists of 22 franchised dealerships throughout Texas, Idaho, Washington, New Mexico, Missouri and Indiana. The deal additionally included 11 used-only shops in Washington, Idaho and Montana.

Sonic, of Charlotte, N.C., mentioned the transaction is predicted so as to add $3.2 billion in annual income.

“RFJ Auto’s geographic footprint, model portfolio and proprietary processes complement our current enterprise mannequin and align with our technique to proceed driving development in our franchised dealership enterprise,” Sonic President Jeff Dyke mentioned in a press release.

RFJ Auto, based mostly in Plano, Texas, fashioned in February 2014 when automotive retail veteran Rick Ford partnered with Jordan Co., a New York non-public fairness agency.

RFJ Auto’s model portfolio is made up of Alfa Romeo, Chrysler, Dodge, Jeep, Ram, Maserati, Chevrolet, GMC, Buick, Lexus, Toyota, Ford, Nissan, Hyundai, Honda and Mazda.

Sonic mentioned the deal provides six new states to its footprint: Idaho, Indiana, Missouri, Montana, New Mexico and Washington. Mazda is a brand new model to Sonic’s automaker portfolio.

The general public group now has 111 new-vehicle dealerships.

RFJ Auto ranked No. 42 on Automotive Information‘ most up-to-date checklist of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 19,705 new automobiles and 28,448 used automobiles in 2020. The group generated income of $2.8 billion final 12 months.

Sonic ranks No. 7 on the checklist, retailing 93,281 new automobiles and 159,025 used automobiles in 2020 and producing income of $9.8 billion.

Rick Ford is staying on with Sonic as head operator of the RFJ Auto platform. Ford was a Sonic regional vp earlier in his profession and first met Dyke after they each labored at AutoNation Inc.

“I am personally excited to be rejoining the Sonic household, working alongside David, Jeff and the Sonic workforce to proceed delivering an distinctive expertise to customers throughout the nation,” Ford mentioned in a press release.

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