Benzinga | Aug 9, 2021 02:39PM EDT

LMP Automotive Acquires Kia Dealership In New York For $14M

* Automotive retailer LMP Automotive Holdings Inc (NASDAQ:LMPX) has acquired a Kia dealership in New York for $14 million to expand its Northeast footprint further.

* LMP expects the deal to add $2.7 million in adjusted EBITDA or $0.26 per share in 2022. The new Kia dealership generates $82 million in annualized revenue.

* It plans to fund the transaction through a combination of cash, up to $5 million in common stock, and debt financing.

* The deal is expected to close in the fourth quarter of this year.

* LMP held $19.4 million in cash as of March 31, 2021.

* LMP's total franchise and dealership count will increase to 27 and 23, respectively.

* Price action: LMPX shares are trading higher by 4.91% at $18.07 on the last check Monday.