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LMP Automotive Holdings, Inc. (NASDAQ: LMPX), an e-commerce and facilities-based automotive retailer in the United States, today 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.
- Expected to close in the fourth quarter of this year.
- Aggregate Purchase price of approximately $50 million for goodwill expected to be funded through a combination of cash on LMP’s balance sheet, up to $25 million in common stock and debt financing.
- Aggregate Real estate purchase price of approximately $44.1 million.
- Expected to add approximately $18.3 million in adjusted EBITDA or $1.38 per share in 2022.
Richard Aldahan, LMP’s Chief Operating Officer, stated, “First, I would like to welcome Alan Jay Wildstein, Michael Witham and James Lizotte to the LMP organization. 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 Chief Operating Officer, 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.”
Mr. Aldahan concluded, “The operating assets to be acquired include one pre-owned center and 21 new vehicle franchises consisting of: one Buick, one Cadillac, two Chevrolet, one GMC, two Chrysler, two Dodge, two Jeep, two Ram, two Ford, one Lincoln, one KIA, one Nissan, one Toyota, one Maserati and one Alfa Romeo.”
Sam Tawfik, LMP’s Chief Executive Officer, stated, “This acquisition, combined with our previously announced acquisitions, brings LMP’s total franchise and dealership count to 51 and 35, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $1.6 billion, $104 million, and $9.32, respectively.”
Mr. Tawfik concluded, “I also would like to welcome Alan Jay Wildstein and his team to the LMP organization. We are honored to have Mr. Wildstein as Regional Vice President of LMP.
LMP plans to continue to promote and recruit the best of breed talent within our organization as well as externally in these record setting times, while maintaining operational excellence and impressive earnings growth.
Alan Jay Wildstein is a seasoned executive in the automotive industry with nearly 3 decades of experience, currently serves as a Director and Past Chairman of the Florida Automobile Dealers Association. Mr. Wildstein is Chief Executive Officer of Alan Jay Automotive Network from 1992 to present which has been long regarded as one of the region’s largest community partners, sponsoring and donating to hundreds of organizations, events and individuals every year. Mr. Wildstein holds a BBA from Northwood University in Michigan. Awards given to Mr. Wildstein and the Alan Jay Automotive Network include, Business Leadership Award, Time Magazine Quality Dealer Award, Dealer of the Year Award and Sebring Chamber of Commerce Business of the Year. Mr. Wildstein was honored as one of six Ford dealers globally to win the 2017 Salute to Dealers recognition, which was selected and presented by the Ford family.