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Tuesday, 27 July 2021 15:42

LMP to Acquire Chrysler Dodge Jeep Ram Dealership in New York

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LMP Automotive Holdings, Inc., an e-commerce and facilities-based automotive retailer in the U.S., on July 26 announced its entry into a definitive acquisition agreement for a Chrysler Dodge Jeep Ram dealership in New York, along with the associated real estate, generating approximately $80 million in annualized revenue and $2.6 million in adjusted EBITDA.

The deal is expected to close in the fourth quarter of this year.

 

The purchase price of approximately $11 million for goodwill and $8.2 million for the associated real estate is expected to be funded through a combination of cash on LMP’s balance sheet, $5.6 million in common stock and debt financing.

 

The acquisition is expected to add approximately $2.6 million in adjusted EBITDA or $0.26 per share in 2022.

 

“This acquisition will further expand our management team and Northeast footprint," said Richard Aldahan, LMP’s COO. "We intend to continue expanding aggressively in this region as we are seeing a record amount of interest in our dealer partner model.”

 

“This acquisition, combined with our previously announced acquisitions, would bring LMP’s total franchise and dealership count to 26 and 22, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $1.3 billion, $85 million and $7.82, respectively,” said Sam Tawfik, LMP’s CEO.

 

Source: LMP Automotive Holdings, Inc.