AutoNation, Inc., America's largest automotive retailer, on Dec. 12 announced it entered into an agreement to acquire RepairSmith for $190 million.
RepairSmith is a full-service mobile solution for automotive repair and maintenance, headquartered in Los Angeles, CA, with a significant operational footprint in the southern and western U.S.
"AutoNation has embarked on a strategy to be the nation's most comprehensive provider of transportation solutions, meeting the mobility needs of today's and tomorrow's customer through a broad, connected range of products and services that are clearly focused on providing our Customers and their households a comprehensive, unique suite of transportation solutions," said Mike Manley, AutoNation's CEO.
"AutoNation already has more than 12 million customers who have shopped with us, a number that grows every day, and by providing an expansion of our group's capabilities, we not only begin to truly leverage our scale, but most importantly offer an expanded range of products and services that will increase both customer loyalty and deepen our share of our customers' household related mobility spend," Manley said.
"Earlier this year, we added captive financing capabilities and initiated the development of mobility solutions to expand our customer offerings. RepairSmith is the next step in our plan," Manley said. "It expands AutoNation's ability to penetrate the extensive after-sales service market and conveniently respond to our customers' needs by broadening the reach of our existing after-sales network."
The acquisition of RepairSmith will provide AutoNation's after-sales business with another channel to provide service to its existing customer base and introduce additional vehicle owners who have purchased vehicles outside the AutoNation dealer network.
"Although roughly 80% of vehicles sold by AutoNation receive annual service at franchised dealerships during the first three years of ownership, the percentage falls off dramatically in subsequent years," Manley said. "RepairSmith offers customers the convenience of services and repairs at their home, workplace or on-site for fleet vehicles. AutoNation will also utilize RepairSmith as a resource for reconditioning and internal services to increase our speed to frontline readiness and expedite vehicle delivery to customers."
The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions and regulatory approvals.
Source: AutoNation, Inc.