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Monday, 13 September 2021 15:21

LMP to Acquire 85% Interest in Alan Jay Automotive Network in Florida

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LMP Automotive Holdings, Inc., an e-commerce and facilities-based automotive retailer in the U.S., on Sept. 13 announced its entry into definitive acquisition agreements to purchase an 85% interest in the Alan Jay Automotive Network, a 12-dealership group in Florida, along with the associated real estate, generating approximately $345 million in annualized revenue and $18.3 million in adjusted EBITDA.

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

 

The aggregate purchase price of approximately $50 million for goodwill is expected to be funded through a combination of cash on LMP’s balance sheet, up to $25 million in common stock and debt financing.

 

The aggregate real estate purchase price is approximately $44.1 million.

 

The purchase is expected to add approximately $18.3 million in adjusted EBITDA or $1.38 per share in 2022.

 

“First, I would like to welcome Alan Jay Wildstein, Michael Witham and James Lizotte to the LMP organization," said Richard Aldahan, LMP’s COO. "Upon close, Alan Jay Wildstein will be regional vice president at LMP, partner, as well as dealer operator of the acquired dealership group. Michael Witham will continue to be the group’s COO, along with James Lizotte, who will be vice president of operations, each of whom have over 30 years’ experience in the automotive industry.

 

"I look forward to working with each of them in our future partnership. This acquisition will further expand our management team and Southeast footprint. We intend to continue expanding aggressively in this region as we are seeing a record amount of interest in our dealer partner model."

 

Aldahan said the operating assets to be acquired include...


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