Republic Industries, Inc. To Acquire Webb Automotive Group
10 February 1998
Republic Industries, Inc. To Acquire Webb Automotive GroupFORT LAUDERDALE, Fla., Feb. 10 -- Republic Industries, Inc. announced today that it has signed a definitive agreement to acquire the Webb Automotive Group of Irvine, California in a transaction valued at approximately $112 million, payable in cash and/or Republic common stock. The transaction includes all related real estate and is subject to certain conditions, including government and manufacturer approval, and compliance with a framework agreement between Republic and Toyota Motor Sales, U.S.A. The Webb Automotive Group includes a total of eight dealerships, with three in Cerritos, three in Irvine and one each in Garden Grove and Buena Park, California. The dealerships sell Toyota, Lexus, Buick, Ford, and Volvo automobiles and had combined 1997 revenue of approximately $420 million. Webb's Cerritos and Irvine dealerships are located in the Cerritos and Irvine Automalls, respectively, two of the largest automalls in the United States. The transaction does not include the acquisition of Lexus of Cerritos, at this time. As part of the transaction, Lew Webb, the dealer-principal, will sign a multi-year employment agreement with Republic. The Webb Automotive Group will complement existing automotive retail businesses in Republic's Southern California district, including Champion Chevrolet in Manhattan Beach and Magic Ford in Valencia. The company has also signed a definitive agreement to acquire the Southern California Auto Group, with dealerships in Anaheim, Costa Mesa, Beverly Hills, Santa Monica, Redondo Beach, Manhattan Beach, Newport Beach, Torrance and Redlands. Republic recently opened an AutoNation USA used car megastore in Irvine, and plans to open additional AutoNation megastores in Southern California over the next several years. Commenting on the acquisition, Steven R. Berrard, President and Co-Chief Executive Officer of Republic, said, "Lew Webb is one of the premier automotive dealers in the United States and the Lew Webb Automotive Group will add significantly to Republic's growing presence in Southern California. The acquisition complements our strategy of organizing new and used vehicle operations into automotive retail districts that will eliminate distribution inefficiencies and allow us to offer consumers a wide range of vehicles at very competitive prices. We are also very pleased about the opening of the AutoNation megastore in Irvine, which is very close to the Irvine AutoMall, and we look forward to the opening of additional AutoNation USA megastores in Southern California." Lew Webb said, "We have chosen to partner our future with the new wave in the automotive industry. The outlook is encouraging with Republic at the helm as we depart the harbor on our next adventure." Republic Industries, Inc. operates subsidiaries in the automotive retailing, automotive rental, automotive financial services and solid waste services industries. The Company owns the nation's largest chain of new vehicle dealerships and is building a chain of used car megastores that it operates under the AutoNation brand name. Republic also owns National Car Rental System, Inc., Alamo Rent-A-Car, Inc., and several other vehicle rental companies. SOURCE Republic Industries, Inc.