Benzinga | Mar 30, 2021 08:12AM EDT

LMP Automotive Holdings To Acquire 85% Of Two Chrysler Jeep Dodge Ram Dealerships; Terms Of Acquisition Not Disclosed

LMP Automotive Holdings, Inc. (NASDAQ:LMPX), an e-commerce and facilities-based automotive retailer in the United States, today announced a definitive acquisition agreement for 85% of two Chrysler Jeep Dodge Ram Dealerships in New York generating approximately $270 million in annualized revenue.



* Expected to close in June of this year, and we expect that upon closing it will increase the company's revenue by approximately 51%, as well as be immediately accretive to pre-tax income by approximately $5.6 million post minority interest on an annualized basis.

* The transaction includes Central Avenue Chrysler Jeep, located at 1839 Central Park Avenue, Yonkers, New York and Chrysler Jeep of White Plains, located at 70 Westchester Avenue, White Plains, New York.

* To be funded through LMP's balance sheet along with 25% in common stock and a 15% rollover dealer principal interest along with 50% bank finance.

Richard Aldahan, LMP's Chief Operating Officer, stated, "We look forward to welcoming Jonathan Grant and his high-performing teams to the LMP family; their unmatched commitment to serving their local communities and providing the uppermost level of customer service embodies LMP's core values."

Sam Tawfik, LMP's Chief Executive Officer, stated, "First on behalf of myself and the LMP team I want to welcome our new partner Jonathan Grant to the LMP family as well. We all look forward to working together to expand on the team's historical success."

Mr. Tawfik concluded, "We expect this partnership to significantly increase LMP's revenues in the important New York Northeast region, along with materially enhancing profitability."

Upon closing, this acquisition would bring LMP's total contracted and closed franchise and dealership count to 18 and 17, respectively. Our total contracted and closed transactions in the month of March are expected to add over $800 million revenue on an annualized basis to LMP and brings us a step closer to our goal of adding an additional 80 to 100 dealerships to our network by the end of next year by way of mergers and acquisitions, which we project has the potential to add $5.1 billion to $6.4 billion in revenue."