They are putting some of their new money to work. Looks good.
PHOENIX--(BUSINESS WIRE)--March 5, 1997--Ugly Duckling Corp. (NASDAQ/NM:UGLY) Wednesday announced that it has signed an agreement to purchase substantially all of the assets of E-Z Plan Inc. of San Antonio, including seven used car dealerships operating in San Antonio under the name "Red McComb's EZ Motors" and a contract portfolio of approximately $27 million.
With its current dealerships, as well as those scheduled to open soon, the acquisition will bring to 24 the number of dealerships operated by Ugly Duckling. The company now operates 13 dealerships in Arizona and Florida, and plans to open in the near future one in Las Vegas, two in Albuquerque, N.M., and another in Phoenix.
"Our decision to enter San Antonio is part of our overall strategy to expand into geographic regions where we can dominate the 'buy-here-pay-here' used car market," said Ernest C. Garcia II, Ugly Duckling's chairman and chief executive officer.
"We selected San Antonio because it is an excellent market for our operations and Red's dealerships because they enjoy a very strong presence in that locality. Additionally, we believe our marketing campaigns and operating strategy will enhance our penetration even further.
"With this acquisition and our other locations slated to open soon, Ugly Duckling will become the largest chain of 'buy-here-pay-here' dealerships in the country."
The purchase, scheduled to close by April 1, is subject to various conditions, including regulatory approval. Its terms were not disclosed.
With headquarters in Phoenix, Ugly Duckling operates one of the largest chains of "buy-here-pay-here" used car dealerships in the United States, and underwrites, finances and services retail installment contracts generated from the sale of used cars by its dealerships and by third-party used car dealers located in selected markets throughout the country. -0-
This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed in the Company's Securities and Exchange Commission filings.
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