Keating Auto Group Buys Houston Dealership from Ken Garff Automotive Group
Ken Garff Automotive Group, the third largest private dealership group in the U.S., sold its Northwest Chrysler Dodge Jeep Ram dealership to Texas-based Keating Auto Group. The sale was announced by Kerrigan Advisors.
Northwest CDJR, owned by Ken Garff Automotive Group since 2007, is located in the Northwest Houston auto retail market with a uniquely large market area for the franchises. Houston is known for its strong truck and SUV market where, in 2023, 78 percent of new units sold were light trucks, resulting in high revenue per vehicle for SUV and truck-focused franchises. This makes it a very attractive market for CDJR, given its robust lineup of SUVs and trucks.
Ken Garff Automotive Group, ranked ninth largest US dealership group by Automotive News based on 2023 new unit sales, was founded by Ken Garff after opening his first dealership 90 years ago in Utah. The group has since expanded to nine states with 73 dealerships and 28 brands. Keating Auto Group is the 17th largest US dealership group and one of the largest in the state, with an estimated 30 dealerships across Texas.
This transaction represents Kerrigan Advisors’ 17th Texas franchise sold in the last 12 months.
“I want to thank the Garff family for entrusting Kerrigan Advisors to serve as their exclusive sell-side advisor on this transaction,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. “Transactions like this continue to demonstrate that there is strong buyer demand for the fastest growing markets in the US, like Houston.”
Lithia Expands Footprint in the US Southeast Region
Lithia Motors expanded its presence in the Southeast by acquiring Sunrise Chevrolet Buick GMC at Collierville and Sunrise Buick GMC at Wolfchase in Memphis, TN.
The Sunrise stores in Tennessee represent LAD’s entry into the Memphis market, enhancing its footprint in one of the country’s most lucrative regions.
At the same time, Lithia added the Woodbridge Hyundai in the greater Toronto area. The Woodbridge Hyundai location will eventually move to an existing owned facility, promising strong returns. Woodbridge Hyundai has been recognized as a “Best Dealership to Work for” by Automotive News for the last five years.
These new acquisitions are expected to generate more than $240 million in annualized revenues and increase Lithia’s total expected annualized revenues acquired this year to more than $5.6 billion. The purchases were financed through existing on-balance sheet resources.
The expansion into Memphis and Toronto follows the acquisition of U.K. car dealership group Pendragon is expected to solidify its expansion into Britain and Carousel Motor Group expanding to its footprint in Minneapolis-St. Paul. The acquisition of Pendragon and Carousel is expected to add around $4.5 billion and $900 million, respectively, to Lithia’s annualized revenues.
Mosaic Auto Group Acquires Tom Heffernan Ford in Minnesota
After 51 years as Tom Heffernan Ford, there’s a new name over Lake City’s car dealership — Mosaic Auto Group.
Mosaic Auto Group purchased the dealership at 310 North Lakeshore Dr. in Lake City, MN, from Tom Heffernan earlier this month. In 2023, the dealership celebrated its 50th anniversary and marked Heffernan’s personal career milestone of selling cars for 72 years.
Mosaic Group General Manager Paul Croshaw said taking the wheel of the longtime Lake City dealership was a good fit for Mosaic’s strategy for the region as it owns Mosaic Chrysler and Mosaic Chevrolet in Zumbrota, MN.
“We have a vision to be able to serve all of southeast and southwest Minnesota,” said Croshaw. ” We’re utilizing years and years worth of automotive experience and background to bring these stores into the new age of customer service and car buying, while continuing to support the communities, like Lake City, in the process.”
Mosaic retained the Lake City dealership’s staff of 18, which adds to the more 85 people that the auto group employs in Zumbrota.
In addition to the full line of new Ford models, including the EV cars, the Lake City dealership will have an inventory of about 55 to 60 pre-owned vehicles. Bringing the dealership under the Mosaic brand means that Lake City area car buyers now also have access to the used cars and trucks at the Zumbrota dealerships.
Manheim Launches Auto Auction in Alabama
Manheim has partnered TR Group to establish 4 Star Auto Auction in Valley, AL. Built from the ground up, the $4.2 million facility sits on nearly 22 acres and will operate two auction lanes with the ability to expand to three lanes, as needed.
The leverages Manheim’s technology, expertise and staffing, along with the services dealers rely on such as financing, condition reports and assurance solutions. The first sale was held on May 29 and attracted 189 dealers in-lane and online. Of the 85 vehicles offered, nearly half were sold.
“When Manheim approached me about partnering on this new location, I thought it was a great opportunity,” said Terry Ratliff, owner and principal of Opelika, Alabama-based TR Group. “The Manheim brand is synonymous with quality, something I’ve spent 20 years building at TR Group, so the partnership was a natural fit.”
Manheim’s mobile strategy was initially developed to offer independent and small franchise dealers more convenient ways to buy and sell vehicles. The Valley auction joins Manheim Birmingham to give the wholesale auto auction company two operating locations in Alabama.
“Since we began offering mobile auctions in 2014, we have learned a lot,” said Doug Kramer, Market Center leader for Manheim’s southeast region. “In addition to bringing convenient and needed inventory to dealers where they live and work, mobile auctions provide quality inventory and services, along with historically solid conversion rates, to help our dealers grow their business.”
