The acquisitions, when completed, will give Sonic about $496 million in 1999 revenues in the Dallas-Ft. Worth area and about $663 million in the South TX-Houston area. The buyouts are expected to close in fourth quarter 2000 or early 2001.
The acquisitions are part of a "hub-and-spoke" strategy that Sonic has undertaken, says O. Bruton Smith, Sonic CEO and chairman. To date this year, Sonic has bought 14 dealerships totaling about $1.1 billion in annual revenues.
Sonic is the second-largest automotive retailer in the US. Including pending acquisitions, it operates 174 franchises and 32 collision repair centers. Sonic had revenues of $3.4 billion in 1999, an increase of 109% over 1998. The revenue run rate is estimated at more than $6 billion for 2000.
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