Funds Managed by Apollo Global Management Acquire Large Portfolio of Auto Dealership Properties
Haig Partners LLC recently advised Apollo Global Management, Inc. on the purchase of 34 automotive and motorcycle dealership properties across the US. The transaction value was approximately $585 million. The dealership properties are located in 15 states and the District of Columbia.
“Real estate is one of the biggest components of value in auto retail, and this purchase of dealership properties represents one of the largest transactions in our industry’s history. We were honored to assist Apollo on this transaction,” said Alan Haig, President at Haig Partners. “The auto retail industry continues to perform well and we are seeing good returns to dealership owners and investors. As stated in our Q2 2019 Haig Report, dealership profits for the first six months of 2019 are up 0.6% compared to the same period in 2018. New vehicle sales are down, but dealers have compensated with higher sales of used vehicles, improved finance and insurance penetration, and additional parts sales and service work. The stock prices for the six publicly traded franchised auto retailers are up an average of almost 50% so far this year, compared to about 20% for the S&P 500.”
Haig Partners LLC is a boutique investment banking firm that focuses on auto/heavy truck/RV dealers and the companies that serve them. It is the leading buy-sell advisory firm to owners of higher value dealerships and dealership groups. Since 1996, the principals at Haig Partners have completed over 170 dealership transactions totaling almost $5.0 billion, more than any other team in the industry. They also publish the widely followed Haig Report that tracks trends in the auto industry and how they impact dealership valuations. The latest Haig Report is available here. Alan Haig is a frequent speaker at leading industry events. For more information, visit www.haig partners.com.