Strategic Acquisition Positions Sonic Automotive Among Top U.S. Auto Partners and Expected to Add $3.2 Billion in Annualized Revenue
CHARLOTTE, N.C.–(BUSINESS WIRE)– Sonic Automotive, Inc. (“Sonic Automotive” or “Sonic”), a leading Fortune 500 automotive retailer, has officially announced the completion of its acquisition of RFJ Auto Partners, Inc. (“RFJ Auto”). The agreement, initially established on September 17, 2021, marks a significant milestone in the automotive industry, creating one of the nation’s largest networks of auto partners under the Sonic Automotive umbrella. This acquisition is projected to elevate Sonic Automotive into the top tier of U.S. dealer groups, based on total revenue.
The integration of RFJ Auto Partners brings 33 dealership locations across seven states and a diverse portfolio of 16 automotive brands into Sonic Automotive’s network. This strategic move extends Sonic’s reach into six new states and broadens its brand offerings by five, notably including Dave Smith Motors, recognized as the world’s highest-volume Chrysler Dodge Jeep RAM dealership. Beyond geographical and brand expansion, this acquisition is anticipated to contribute an impressive $3.2 billion in annualized revenues, further accelerating Sonic Automotive towards its ambitious target of $25 billion in total revenues by 2025.
David Smith, Chief Executive Officer of Sonic Automotive and EchoPark Automotive, shared his enthusiasm: “Welcoming Rick Ford and the talented RFJ Auto team to the Sonic family is a momentous occasion. Our organizations are aligned in culture and vision, with a shared dedication to delivering exceptional guest experiences and fostering professional growth for our teammates. We are confident that by leveraging our combined strengths and values, we will achieve significant growth and expand our national footprint as leading auto partners.”
Jeff Dyke, President of Sonic Automotive and EchoPark Automotive, also commented on the successful completion of the acquisition: “We are thrilled to finalize the acquisition of RFJ Auto and are eager to begin operating as a unified company. RFJ Auto’s strategic geographic presence, diverse brand portfolio, and efficient processes are highly complementary to our existing business model. This alignment is perfectly in sync with our growth strategy for our franchised dealership operations, enhancing our position as premier auto partners in the market.”
Rick Ford, formerly Chief Executive Officer of RFJ Auto Partners, expressed his positive outlook on rejoining Sonic Automotive: “The RFJ Auto team has eagerly anticipated this day and this pivotal achievement. I am personally excited to once again be part of the Sonic family, collaborating with David, Jeff, and the entire Sonic team. Together, we will continue to elevate the consumer experience across the nation, reinforcing our commitment as trusted auto partners.”
About Sonic Automotive
Sonic Automotive, Inc., a Fortune 500 company headquartered in Charlotte, North Carolina, is committed to becoming the most valuable automotive retail and service brand in America. The company’s culture is built upon innovation and industry-leading guest experiences, driven by strategic investments in technology, personnel, and innovative ideas. Sonic Automotive strives to fulfill ownership dreams, enrich lives, and bring happiness to both guests and teammates. As one of the largest automotive retailers in the U.S., Sonic Automotive is dedicated to achieving this vision through expansive growth and progressive leadership in the automotive sector. The company’s evolving platforms, programs, and people are designed to shape the future of automotive experiences. More information about Sonic Automotive can be found at www.sonicautomotive.com and ir.sonicautomotive.com.
About EchoPark Automotive
EchoPark Automotive, a subsidiary of Sonic Automotive, is rapidly emerging as a leading retailer of nearly new pre-owned vehicles in America. With an ambitious growth plan targeting 90% U.S. population coverage by 2025, EchoPark employs a technology-driven sales strategy focused on delivering a personalized, guest-centric buying process. This approach has earned EchoPark the 2021 Consumer Satisfaction Award from DealerRater and is characterized by significant customer savings and superior value. EchoPark is poised to become the #1 retailer in the nearly new pre-owned vehicle market by 2025, continually enhancing its digital ecommerce platform and expanding its national brand presence. EchoPark’s mission is encapsulated in its name: Every Car deserves a Happy Owner, driving exceptional car buying experiences that differentiate it from competitors in the auto partners landscape. Further details about EchoPark Automotive are available at www.echopark.com.
Forward-Looking Statements
This release contains forward-looking statements, including those concerning anticipated annualized revenue contributions from the acquisition, projected revenue increases, dealer group rankings, future synergies, and EchoPark’s market coverage. These statements are subject to various factors, risks, and uncertainties that could cause actual results to differ materially from management’s expectations. These factors include economic conditions, new and used vehicle sales volumes, the success of operational strategies, economic expansion or contraction, the impact of the COVID-19 pandemic, and other risk factors detailed in Sonic Automotive’s reports filed with the Securities and Exchange Commission (SEC). Sonic Automotive undertakes no obligation to update these forward-looking statements, except as required by securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211207005255/en/
Investor Inquiries:
Heath Byrd, Executive Vice President and Chief Financial Officer
704-566-2400
Danny Wieland, Vice President, Investor Relations
704-927-3462
[email protected]
Press Inquiries:
Joshua Greenwald / Danielle DeVoren
646-379-7971 / 212-896-1272
[email protected] / [email protected]
Source: Sonic Automotive, Inc.
Released December 7, 2021
