Benzinga | Jul 19, 2021 08:04AM EDT

LMP Announces Definitive Acquisition Agreement For General Motors, Nissan Dealerships In Texas For ~$141M

LMP Automotive Holdings, Inc. (NASDAQ:LMPX), an e-commerce and facilities-based automotive retailer in the United States, today announced its entry into a definitive acquisition agreement for General Motors and Nissan dealerships in Texas, along with the associated real estate, generating approximately $250 million in annualized revenue and $27 million in adjusted EBITDA.

* Prime major metropolitan locations.

* Expected to close in the fourth quarter of this year.

* Purchase price, including real estate, of approximately $141 million expected to be funded through a combination of cash on LMP's balance sheet, $42 million in common stock and debt financing.

* Expected to add approximately $27 million in adjusted EBITDA or $2.19 per share in 2022.

Richard Aldahan, LMP's Chief Operating Officer, stated, "We are excited to be expanding into the South-Central Region, one of the most important markets in the United States, which is consistent with our business plan. We intend to continue expanding aggressively in this region. This acquisition significantly increases LMP's management team and revenues in this important region along with materially enhancing LMP's profitability and expanding its reach with a growing reservoir of new- and used-vehicle inventory."

Sam Tawfik, LMP's Chief Executive Officer, stated, "This acquisition, combined with our previously announced acquisition of two CDJR dealerships in New York which is expected to close this quarter, and Hometown Subaru in West Virginia which closed last quarter, would bring LMP's total franchise and dealership count to 21 and 20, respectively, with expected consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate to be approximately $1.16 billion, $80 million, and $7.37, respectively."

Mr. Tawfik concluded, "This brings us a step closer to our goal of having approximately 100 dealerships in our network by the end of next year. We project these additions to our network have the potential to add approximately $5 billion in revenue, $229 million in adjusted EBITDA or $8.80 in adjusted EBITDA per share."