AutoNation to Buy 16 More Car Dealerships in 4 States
In the midst of its search for a new chief executive, car retailing behemoth AutoNation Inc. is keeping up its blistering growth pace.
The company said Thursday it has agreed to buy 16 new-car dealerships in four states for $200 million, including the nine-franchise York Automotive Group in Valencia.
The purchases would give AutoNation, the country’s largest independent auto retailer, 394 new-car franchises in 276 dealerships nationwide.
With the York group, AutoNation would own 69 new-car franchises in Southern California, including nine in the Valencia Auto Mall. York has seven dealerships at the mall. Last year, AutoNation acquired the Magic Ford and Magic Lincoln Mercury dealerships there.
In addition to the Chrysler-Plymouth, Jeep, Dodge, Honda, Chevrolet, BMW and Isuzu dealerships in Valencia, York Automotive owns Terry York Ford in Huntington Beach and a Land Rover franchise in Encino.
AutoNation also operates five AutoNation USA used-car stores in Southern California.
The company also said Thursday it will acquire Shamrock Ford in the San Francisco Bay Area city of Dublin, AutoNation’s 24th new-car franchise in Northern California.
Other acquisitions announced Thursday include a Toyota dealership in South Florida, a Denver-area Ford dealership, a Chevrolet and Subaru dealer in Dallas, and seven Seattle-area franchises, including the six-dealership Maria Smith Automotive Group.
AutoNation, with about $17 billion in annual revenue, reported a profit of almost $800 million last year. But it has been frustrated by a weak stock price. The shares, which hit a high of $42.75 in January 1997, have been trading in the $16 to $18 range in recent months.
Steven Berrard, who shares the chief executive title with AutoNation’s chairman, H. Wayne Huizenga, announced June 30 that he would step down to make room for a more experienced auto industry executive in hopes of bolstering the company’s stock price.
Since then, the share price has continued to dipped. On Thursday, the stock closed at $15.44, down 63 cents, in New York Stock Exchange trading.
