SAH alliance still growing!
Sonic Automotive to Buy 8 Dealers for $56 Mln in Cash, Stock
Charlotte, North Carolina, April 6 (Bloomberg) -- Sonic Automotive Inc. agreed to buy eight dealerships for $56 million in cash and stock, as the third-largest publicly traded auto retailer builds its network in Washington and the southern U.S.
Sonic said it will pay about $15 million in convertible preferred and common stock and the rest in cash. Acquisition of the dealerships, which had combined revenue of $270 million last year, is expected to be complete by the end of the third quarter.
Sonic said it will buy Reading Buick-Pontiac-GMC Truck and Reading Toyota in Baytown, Texas; Shottenkirk Honda in Pensacola, Florida; and Classic Dodge in Mobile, Alabama. It will also buy four of Manhattan Dealership Group's five dealerships in the Washington market. Those include three in Maryland -- Lexus of Rockville, Nissan Jeep of Waldorf and Rockville Porsche -- as well as BMW of Fairfax, Virginia.
Charlotte, North Carolina-based Sonic's shares fell 1/2 to 14 1/8. The company released the news after the close of regular U.S. trading.
Sonic also completed its purchases of the Tom Williams Automotive Group in Birmingham, Alabama, and Bondesen Chevrolet- Oldsmobile-Cadillac in Deland, Florida.
18:21:44 04/06/1999
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