AutoNation to significantly increase Customer retention value proposition through expanded and innovative After-Sales business and continue to extend its range of transportation products and services
FORT LAUDERDALE, Fla., Dec. 12, 2022 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's largest and most admired automotive retailer, today announced it has entered into an agreement to acquire RepairSmith, a full-service mobile solution for automotive repair and maintenance, headquartered in Los Angeles, CA with a significant operational footprint in the southern and western United States.
"AutoNation has embarked on a strategy to be the nation's most comprehensive provider of transportation solutions, meeting the mobility needs of today's and tomorrow's Customer through a broad, connected range of products and services that are clearly focused on providing our Customers and their households a comprehensive, unique suite of transportation solutions.
AutoNation already has over 12 million Customers who have shopped with us, a number that grows every day, and by providing an expansion of our group's capabilities, we not only begin to truly leverage our scale, but most importantly offer an expanded range of products and services that will increase both Customer loyalty and deepen our share of our Customers' household related mobility spend.
Earlier this year, we added captive financing capabilities and initiated the development of mobility solutions to expand our Customer offerings. RepairSmith is the next step in our plan. It expands AutoNation's ability to penetrate the extensive After-Sales service market and conveniently respond to our Customers' needs by broadening the reach of our existing After-Sales network." said Mike Manley, AutoNation's Chief Executive Officer.
The acquisition of RepairSmith will provide AutoNation's After-Sales business with another channel to provide service to our existing Customer base and introduce additional vehicle owners who have purchased vehicles outside the AutoNation dealer network. Although roughly 80% of vehicles sold by AutoNation receive annual service at franchised dealerships during the first three years of ownership, the percentage falls off dramatically in subsequent years. RepairSmith offers Customers the convenience of services and repairs at their home, workplace, or on-site for fleet vehicles. AutoNation will also utilize RepairSmith as a resource for reconditioning and internal services to increase our speed to frontline readiness and expedite vehicle delivery to Customers.
The transaction, pursuant to which AutoNation will acquire RepairSmith for $190 million, is expected to close in the first quarter of 2023, subject to customary closing conditions and regulatory approvals.
About AutoNation, Inc.
AutoNation, a provider of personalized transportation services, is driven by innovation and transformation. As one of America's most admired companies, AutoNation delivers a peerless Customer experience recognized by data-driven consumer insight leaders, Reputation and J.D. Power. Through its bold leadership and brand affinity, the AutoNation Brand is synonymous with "DRVPNK" and "What Drives You, Drives Us." AutoNation has a singular focus on personalized transportation services that are easy, transparent, and Customer-centric.
Please visit www.autonation.com, investors.autonation.com, and www.twitter.com/AutoNation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Please also visit www.autonationdrive.com, AutoNation's automotive blog, for information regarding the AutoNation community, the automotive industry, and current automotive news and trends.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "intends," "goals," "targets," "projects," "plans," "believes," "continues," "may," "will," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, investments, and pending acquisitions, including the planned expansion of our AutoNation USA pre-owned vehicle stores, our investments in digital and online capabilities, and our planned acquisition of RepairSmith, statements regarding our expectations for the future performance of our business and the automotive retail industry, and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: our ability to implement successfully our strategic initiatives, partnerships, investments, and pending acquisitions, including the planned expansion of our AutoNation USA stores; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to develop successfully our digital and online capabilities; our ability to satisfy applicable closing conditions for pending acquisitions, including the planned acquisition of RepairSmith; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new franchises; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; supply chain disruptions and inventory availability; new and used vehicle margins; our ability to attain planned sales volumes within our expected time frames; our ability to successfully implement and maintain expense controls; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; the response by federal, state, and local governments and other parties to, and the economic impacts of, the COVID-19 pandemic; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; the announcement of safety recalls; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
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SOURCE AutoNation, Inc.