Sonic Automotive to Buy Cadillac Dealer

Auto retailer Sonic Automotive Inc. agreed to buy Don Massey Dealerships, the largest seller of Cadillacs in the U.S., and raised its 2002 profit forecast.

Sonic will pay about 1.47 million shares, valued at about $36.6 million based on Monday’s closing price of $24.90, and an undisclosed amount of cash for the Plymouth, Mich.-based company, Chief Financial Officer Theodore Wright said.

Charlotte, N.C.-based Sonic raised its 2002 earnings forecast to $2.38 to $2.45 a share. The average estimate of seven analysts polled by Thomson Financial/First Call is for profit of $2.22.

Shares of Sonic rose $1.97 to $26.87 on the NYSE.