Benzinga | Aug 24, 2021 04:01PM EDT

LMP Announces Definitive Acquisition Agreement For Chrysler Dodge Jeep Ram Dealership In Tennessee

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 a Chrysler Dodge Jeep Ram dealership in Tennessee, generating approximately $42 million in annualized revenue and $1.4 million in adjusted EBITDA.

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

* Purchase price of approximately $4.5 million for goodwill expected to be funded through a combination of cash on LMP's balance sheet, up to $2.5 million in common stock and debt financing.

* Expected to add approximately $1.4 million in adjusted EBITDA or $0.12 per share in 2022.

Richard Aldahan, LMP's Chief Operating Officer, stated, "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."

Sam Tawfik, LMP's Chief Executive Officer, stated, "This acquisition, combined with our previously announced acquisitions, would bring LMP's total franchise and dealership count to 30 and 23, respectively, with consolidated annualized revenue, adjusted EBITDA and adjusted EBITDA per share run rate expected to be approximately $1.3 billion, $86 million, and $7.94, respectively."